Forex Trade Strategies For AUDUSD and USDCHF
The Australian Dollar (AUDUSD), The’Australic Dollar’, the ‘NZDUSD’, or the ‘GBPUSD’, indicates how much a dollar (your quote currency) is worth in comparison with the United States dollar (the main international currency used by most of Australia’s trading partners). To clarify, if you are transacting business using AUSP or another such similar abbreviation, the term” AUD” means “aneously” and the term” NZD” means “not at.” To indicate a price point above the current market price levels (also known as “trend lines”) the names of the currencies should be written on the boxes instead of just “AUSP”. For example, if your business is doing business in Sydney and if the current price there is over $1000, you should buy USD denominated shares and convert them to AUSP before trading. If you are now trading in Brisbane, you should sell the shares you held in Sydney and buy the AUSP denominated shares. It is that simple.
The EuroUSD, The” Euro” The EuroUSD, also known as the EURUSD or the “EURUSD” is an alternative to the AUSP which indicates a point beyond which the market will move either up or down (depending on the country which is the main factor influencing the movement of the market). Unlike the AUSP, which is based on one particular base (i.e. Australia), the EURUSD is based on various other factors, including (but not limited to) the Eurozone economic recession and the fact that the European Central Bank (ECB) keeps the interest rates it controls on a monthly basis very low (which makes it less-effective for the lenders of the euro) as compared to the interest rates it charges on the US Dollar. In addition, the EURUSD is also determined by various economic data releases. The release of data by the European Central Bank (ECB) is called the European Economic Report.
There are four major pairs of foreign exchange traded on the AUSP: the US Dollar/USD (USD/AUS); the US Dollar/British Pound (USD/GBP); the Australian Dollar/USD (AUDUSD/USD); and the Canadian Dollar/USD (CADUSD/USD). There are two more minor currency pairs that are also traded on the AUSP. These are the Eurodollar and the Yenese currency pair (yeniseyuan). The four major pairs are what make up the Australian Dollar Exchange.
As previously stated, the EuroUSD is a low-liquid form of currency pairs that are influenced by a relatively small number of world currencies. It is less liquid than the AUSP. On the average, about seven world currencies have a say in which the EuroUSD moves. This is less than half as many as are available for the AUSP.
The strength of this Forex trade is that is very easy to trade and has limited daily range. However, its price is sensitive to factors such as economic reports in Europe and the US. The euro may weaken against the dollar given the European report suggesting that the UK economy will weaken while the US economy recovers. The AUDUSD will react to any weakening of the euro against the dollar resulting in a sell-off of the AUSP and driven by the possibility that AUDUSD may fall even further.
The second major currency pair that is affected by the US economic recovery is the GBPUSD. This is another low-liquid base currency pair. Traders may worry that a weak euro may result in the GBPUSD strengthening against the US dollar and this would send the market gaper than the AUSP.
The third most liquid base currency pairs are the USDCHF and EURUSD. These are the gurus and gbpusd. Trading of these pairs is more difficult due to the fact that they have no clear indicator to follow. The EURUSD moves up and down depending on the mood of the US and European markets. In a way, this makes them similar to the EURUSD and USDCHF.
These three currency pairs are among the many traders tools that they use when they look at technical indicators. There is nothing wrong with relying on technical analysis. However, there are still many traders who find it easier to use support and resistance levels and trade using candlestick charts. Both of these charts are quite effective and allow one to get an overview of the market. However, the analysis of these three pairs is much better because it provides more in-depth information.