Forex Technical Analysis: What forex pairs are moving right now?

In the dynamic world of forex trading, understanding which currency pairs are currently experiencing significant movement is crucial for making informed trading decisions.

1. EUR/USD

EUR/USD, often referred to as the "fiber," is widely regarded as the most popular forex pair, known for its high trading volume and low spreads. Its popularity is largely due to its role as a key indicator for the two largest economies in the world: the United States and the Eurozone.
The EUR/USD pair is primarily influenced by political developments that impact the dollar and the euro, as well as their interrelationship. For instance, if the Federal Reserve takes measures to strengthen the dollar, you can expect it to appreciate against the euro, leading to a decline in the EUR/USD pair.

2. USD/JPY

USD/JPY is known for its low spreads and relatively predictable price movements compared to other currency pairs. While the yen experiences significant daily volatility, the Bank of Japan actively intervenes in the market to manage exchange rates and support a competitive export sector.

This intervention has led to the yen being described as operating under a "dirty float" regime—though it is technically a floating currency, it is not entirely free from central bank influence. Thus, trading USD/JPY allows traders to capitalize on these regular fluctuations, provided they time their buy and sell decisions effectively.

Often referred to as the "gopher," USD/JPY has also gained popularity as a way to trade the dynamics—especially tensions—between the United States and Asian markets, particularly as competition intensifies in fields like technology and e-commerce.

3. GBP/USD

GBP/USD, commonly referred to as "cable," has long been a favored forex pair. However, significant economic and political events in the UK—such as the 2008 financial crisis and Brexit—have led to a marked increase in traders looking to speculate on the UK economy.

In September 2022, for instance, GBP/USD drew considerable attention as the UK government and the Bank of England struggled to control rising inflation, resulting in the pound falling to its lowest value since 1985.

This currency pair is typically categorized as volatile, with substantial price swings contributing to its popularity among traders. However, it’s crucial to remember that increased volatility also entails higher risk, making it essential to utilize stop-loss and limit orders to safeguard your trades.

4. USD/CNY

The USD/CNY pair consists of the US dollar and the Chinese renminbi (yuan), representing the exchange rate between the two largest economies in the world and their status as major exporters.

Historically, the yuan has been valued lower than the US dollar due to the Chinese government intentionally keeping its price low to maintain competitive export conditions in the global market.

Currently, one of the key factors to watch when trading the USD/CNY pair is US-China relations, which have experienced tensions for various reasons over the years. For example, in August 2022, US House Speaker Nancy Pelosi's visit to Taiwan prompted Beijing to suspend climate talks and halt high-level military communications with the US.

In the forex market, CNY refers to the onshore trading of the Chinese renminbi, while the offshore version is denoted as CNH. The CNH is typically subject to less government control than the CNY, resulting in greater volatility on trading platforms where it is listed as USD/CNH.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.