As you all probably know the major currency pairs are the following:
I actually only trade one of the majors and two other currency crosses.
So without keeping you in suspense any longer here are my top three forex trading pairs:
I prefer to trade the EUR/JPY above the EUR/USD.I have found that the range and price action you get on the EUR/JPY are far superior to the EUR/USD.The EUR/USD seems to go into lulls where it goes sideways for long periods of time.
A great forex trading pair. You get range and explosive price action with impulse type moves that can give you 40 pips in a flash. The best time to trade the GBP/USD is during the European session around the Frankfurt and London opens. You almost always get a very good move during that time.
Before you freak out over the spread of this pair that is 6 to 8 pips you must realize that the range of the GBP/JPY is just incredible.
It is by far the currency pair with the biggest range. If you are a skilled forex trader you get exceptional forex trading opportunities on the GBP/JPY.What I also like of this pair is that it makes impulse moves where you can be out on your profit target in a couple of minutes.
Just do not get on the wrong side of this pair or you can be out on your stop in a couple of minutes!
This is also a forex trading pair where you absolutely have to trade with a stop. If you allow this pair to run away with you it can lead to huge losses.
All three these pairs can also have major reactions to news – so you have to be aware of the red marked announcements on the economic calendar on this site. You can get spike price action of hundreds of pips in both directions which are totally unpredictable, and will run your stop in a flash.