EUR/USD LIVE EXCHANGE RATE
EUR/USD Currency Pair Overview
The EUR/USD is the most traded currency pair in the world and that obviously makes it one of what is known as the “Major Currency Pairs” in forex.
Trading the EUR/USD currency pair is known as trading the “euro”.
The reason this pair is so popular is because of the fact that the euro and the US dollar represent the two biggest economies in the world. There is an incredibly large amount of daily movement taking place in economic terms with regards to both EUR and USD.
As you might imagine from the most traded currency pair, the EUR/USD market is a very liquid one. This is great news for traders as it means that brokers are able to keep spreads low.
Main factors of influence on EUR/USD currency pair
Major social, political, and economic events in Europe and the United States can have a big impact on the price movements of the EUR/USD currency pair.
The policy decisions related to these two currencies are made by the European Central Bank and the Federal Reserve Bank. Official announcements are almost always planned in advance. You can see when and at what time these announcements will be made by looking at the Economic Calendar.
Smart traders will always be prepared to react to scheduled announcements and data releases from the central banks and other related government sources.
What strategies to use for EUR/USD currency pair
As with all trades, there is a huge selection of different strategies that you could use when trading EUR/USD.
No one strategy is the best one, or everyone would use it, but here are some of the most popular that you could try out for yourself.
Swing Trading: This is a medium-term trading strategy where you plan to capture a single move in the market. To employ this strategy, you need to understand concepts like support and resistance, and how moving average works.
Fundamental Analysis: A key strategy for major currency pairs, fundamental analysis means that you keep a close on the news, including all social, political, and economic factors that could affect the strength of the currency.
Day Trading: When using this strategy, you will completely ignore fundamental analysis and focus instead on the charts. Then you decide whether today is a buy or sell and follow that direction for the day.
Sentiment Analysis: This strategy means that you get an understanding of how the market is feeling in terms of risk. The futures market is a good tool to use when using this strategy in forex.
Why you need to choose Capitalix for trading EUR/USD currency pair
After deciding you want to enter the forex market by trading EUR/USD, the first thing you must do is find a regulated and trusted online forex broker who you can trade with safe in the knowledge that your funds are completely protected.
At Capitalix, we’ve got you completely covered. You can trade EUR/USD with full peace of mind as we are regulated by the Seychelles Financial Services Authority.
Apart from the security provided by the regulatory body, the Capitalix team places a keen focus on providing all of our traders with the very best trading tools, educational packages, and customer support. All you have to think about is how to make those winning trades.
How to trade EUR/USD currency pair on Capitalix.
The first thing you need to do is to sign up with Capitalix and add some funds to your account.
Once the minimum deposit has been credited to your trading account, you just need to follow these simple steps to make your first EUR/USD trade:
• Make sure that the leverage level is set correctly.
• Select the FX market from the different market options.
• Locate EUR/USD currency pair and select the number of lots you’d like to trade.
• It’s important that you add a Stop-Loss limit on the trade.
• Based on your strategy, choose whether you are going to go Long or Short.
• Execute the trade.
• You can now track your trade in real-time and exit when you’re making a nice profit!
One of the great things about trading with Capitalix is that we look out for our traders by offering Negative Balance Protection. This means that you can never lose more than your deposited amount. If a trade ever takes your balance into the negative, Negative Balance Protection means that it will be reset to zero with no additional fee.
When starting to trade EUR/USD, you need to understand that while the forex market might be open 24 hours a day, the EUR/USD currency pair isn’t fully active all of the time.
For this reason, it makes sense to restrict your trading to when the major exchanges in Europe and the United States are open.
• The American Session (New York – USD): 12:00 GMT – 20:00 GMT
• The European Session (London EUR): 07:00 GMT – 16:00 GMT
As this is a currency pair that is affected by economic announcements, you should also do some research before making your first trade.
Remember to always keep an eye out for when there are going to be any major economic announcements from the European Central Bank or the Federal Reserve.
Interest rate decisions have a big impact on price movement, but so too do things like GDP updates, employment rates, and the Consumer Price index.
Also start to follow the wider news as social and political events will also impact the price movements of EUR/ USD.
Follow these simple guidelines and you’ll be all set to take on the markets by trading EUR/USD.