Speaking of the eurodollar, it is famous as a currency pair that does not cause much price fluctuations and has a very difficult price range. Perhaps because of that, the EURUSD currency pair is also very suitable for scalping. Describe the characteristics of the Eurodollar.
Features of the Eurodollar
The characteristics of the Eurodollar can be summarized as follows. This is a currency pair that is often used as a swing trade method. The time zones where foreign exchange moves are the London market and the New York market. There is a possibility of large losses when using automatic trading, etc., so if you do not cut your losses technically, you will incur losses. Some people do things like contrarianism, but if the pattern goes far beyond the moving average line, it will not reverse and it will be difficult.
No. 1 trading volume in the world
EURUSD is the world’s most popular and traded currency pair along with GBPUSD and USDJPY. The euro is a currency used in about 19 countries, and the dollar is the world’s key currency, so it is characterized by a large number of users. As a currency pair that is driving the global economy, it has a large trading volume and is characterized by less price fluctuations. The Eurodollar is the most traded currency pair in the forex market, accounting for about a quarter of all forex trading worldwide.
don’t move much
As mentioned above, the euro dollar is a currency pair whose price movements are difficult to be unilateral. The monthly chart since 1970 is below, but it is a currency pair that only moves between 0.6 and 1.6. Therefore, the possibility of making a big profit is low, but it is a currency pair with a low risk of big loss, so it is recommended for beginners.
Source : Tradingview
Asian time doesn’t work
Eurodollar does not move on Asian time. Since it’s a EUR/USD pair, there’s no reason to move to Asian time. The main event runs from the London market to the New York market. Policy interest rates, unemployment, and even political events can cause cataclysms. Therefore, please note that the quality of price movements is completely different between Asian time and European time.
Is EURUSD good for scalping?
It is said that EURUSD is suitable for scalping. The reason is as follows.
less likely to trend
EURUSD is hard to trend. This is because, as explained above, the euro/dollar has a very large trading volume, so if it moves unilaterally, it will have a large repulsive effect and the supporting force will move easily. For that reason, you can expect stable price movements without trending, so it is a currency pair that is very suitable for scalping loads.
Inversely correlated with dollar-yen
The euro-dollar price movement has the characteristic that it tends to move in the opposite direction to the dollar-yen price, such as falling when the dollar-yen rises and rising when the dollar-yen falls. Just as the dollar yen is affected by the US dollar, the euro dollar is affected by the US dollar. Therefore, it is likely to be inversely correlated because it is linked to the movement of the US dollar. People who play EURUSD tend to watch USDJPY as well. By looking at it this way, you can also tell when to start scalping.
narrow spreads
EURUSD, USDJPY and GBPUSD have very narrow spreads. In most cases, the difference between the buying price and the selling price is within 1.0 pips, which is very suitable for scalping. Scalping is often settled in a few seconds after entry, so the narrow spread is the most important.
scalping entry timing
Scalping entry timing can increase the winning rate because you can fight safely by suppressing the following points.
range market
Let’s look at the daily, 4-hour, and 8-hour timeframes. The point is whether the market is in a range. If the market is trending, you should stop scalping and follow the trend. Please check the range market as much as possible on a long-term chart. In the case of short-term legs, it is because it is easy to cheat. Also, as explained above, Asian time tends to be ranged, and European time tends to trend, so be careful.
entry timing
The entry timing is to sell at the highest price and buy at the lowest price. If you break this highest and lowest price, there is a high possibility that it will become a trend, so don’t endure it and cut the loss. This is because in many cases it means the end of the range market. If you get a profit of about 10 pips, you should take a profit. This is because the Eurodollar has a high probability of coming back.
Source : Tradingview
Exness is for scalping
Exness is for scalping. This is because the spread is extremely narrow. Therefore, if you like scalping, please register with Exness and start trading. Since opening an account is free, please refer to the following article to open an account.
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