EURUSD TradingView

EURUSD Tradingview Chart

Why trade EUR/USD?

The EUR/USD pair is the most popular of the major pairs. People like it because they can make money from it.

• The prevalence of these currencies is that they are the two most popular reserve currencies. There is a lot of data about their pairing and it can be easy to follow.
• The EUR/USD is a good currency because there is always money in it. Plus, when you buy or sell, the spread will be low.
• There are a lot of people who trade and they do it because the prices go up and down. The more people who trade, the faster prices can change. But this means that you have a higher chance of making more money by trading.
• In some ways, it is now easier to make forecasts because you can see graphs and charts. For example, it's easier to do Elliott wave analysis. You also have active communities online that people share their weekly predictions.

So, with historical data downloads just a few clicks away and spreads all over the internet, intraday traders have plenty of access to the information they need.

Currency Correlations

When you trade, there are other currencies to care about. You may see a currency in many different pairs. That's because all the currencies are linked together and they trade with each other.

Relationships that are always in the same direction are called positive correlations. Relationships that go in opposite directions are called negative correlations.

Positive correlation When money pairs react in the same way, they are positively correlated. Most popular money pairs are GBP/USD, AUD/USD, and EUR/USD. This is because USD is the counter currency. Whenever there's a change in US dollar, it will also affect all of these pairs.

Negative correlation This is when currency pairs move in the opposite direction. Popular pairs include USD/CHF, USD/JPY, and USD/CAD. The counter to these major currencies is the US dollar because that's what they use to measure it.

Role of the US dollar

The EUR/USD related index that we look at today will have been shaped in part by the US dollar's unique role over the years. Here are some reasons why it has grown to become the world’s most important currency:

The U.S. dollar is the world's reserve currency. It is used to settle most international transactions. Many countries will keep a lot of their money in US dollars. Countries and banks often keep US dollars. Prices for things like gold are often set in US dollars. OPEC also trades in US dollars. You need to know what drives the US economy. That way you can predict where the US dollar will go. It is most featured in popular pairs like USD/JPY and EUR/USD, so you need to know that too.

Role of the Euro

The European Union is the biggest economic region. Its total GDP is about $18.3 trillion in 2018. What some people do not know when they look at their EUR/USD live chart, is that the euro’s growth comes mostly from services and manufacturing. As such, when economic activity slows down in the European Union, the euro will also go down.

Although the European Union is made up of several member states, it has only one central bank and one currency. The euro was used to replace local currencies in the eurozone countries. This meant that there were no exchange rates or transaction fees involved when trading goods or services between these countries.

The euro is also used in some other countries outside of the European Union like Kosovo, Montenegro, and Andorra.

The euro is a unique currency because it is used in 19 of the 28 countries in the EU. Every day, 400 million people buy and sell with euros. As the popularity of the euro has grown, so have economic and political events in Europe. To be a successful FX trader, you need to pay attention to both the US dollar and the euro.

Bullish trends for this popular pair are often short-lived, so make sure you keep your stop losses tight! It is also important to know how volatility works before trading this pair. There are a few more things you need to know, so be sure to add them to your checklist of things that will help you trade the EUR/USD correctly every time.

EUR/USD Trading Checklist

• Know what drives the US economy to predict where the USD will go
• Keep your stop losses tight!
• Understand how volatility works
• Know what drives the European Union

How to trade EURUSD on TradingView

5. Place your EURUSD Trade via TradingView

Benefits & Risks Trading EURUSD

Benefits of trading EURUSD

• It's a very stable currency.
• There is a lot of liquidity in the market for this currency pair.
• The EURUSD is traded all over the world, which means that it can be bought and sold at any time of day.

Risks of trading EURUSD

• High EURUSD volatility.
• If you trade on margin you need to make accurate forecasts.
• Many people are trading with algorithms that you have to manually analyze and react to a bullish market.