Choosing a trading asset is a matter already known to novice traders, who see a list of trading possibilities in binary as well as forex signal software and options binaries. Of course, you can make a stable profit from stocks as well as binary options. But if you are a beginner and need more experience with the correct financial instrument, then the best solution would be to choose a central currency pair.
EUR/USD
EUR/USD is a major currency pair, which accounts for up to 30% of the volume of transactions on the Forex market and the real number of binary options signals. Together with the US dollar, the EC currency is the basis of the financial flows of the stock and foreign exchange markets. In addition to spot contracts, all types of financial instruments are presented in euros: currency futures, options, derivatives, shares in ETF funds, and stock exchange indices in Europe. EUR/USD also affects Asian pairs, therefore, all traders should be able to understand their movements.
The main fundamental factors
Several major fundamental factors can affect currency pairs. There is a huge amount of analytics, economic statistics, and other data in the Eurozone. in addition you can also make high-quality forecasts for all EUR assets in addition to free binary signals. US indicators, changes in commodity markets, and the actions of major banks also had an impact. we will pay attention only to the following factors, all their detailed considerations are beyond the scope of this article.
- Data on GDP (Gross National Product), inflation, employment, and stock indices of EU countries, such as the German DAX, do not have a significant influence.
- The speech of the head and decision of the European Central Bank (ECB) is the basic news that can completely reverse the current trend, not to mention speculative actions on quarterly and annual reports. Preliminary data rarely differ from estimates; The market reaction usually works before it is released. The exception is when the initial data is subject to significant revisions, then there may be short-term spikes in the EUR/GBP and EUR/JPY cross pairs.
Technical analysis and trading signals
Despite the delay, the synchronous movement of the pound and the Euro continues to be the basic principle of technical analysis of the pair. not only in the European session, continued high liquidity is likely to occur throughout the trading day, not just in the European session alone. GBP/USD is also actively used in swap and hedging transactions. The best results are shown by medium and long-term strategies as well as intraday scalping. The Breakout/Rebound method of the price level gives a lot of false signals!
We need to know that the cross pair with GBP works similarly to the Euro, since a careful analysis of the second asset, is always necessary.
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