When trading GBPUSD, I find its patterns are better predictable and much more consistent in terms of price action. The downside is its bid-ask spread cost is relatively expensive compared to EURUSD (where its spread is nearly zero during liquid periods). But the downside of trading EURUSD is that EURO isn't really floating currency (although its volatility is still better than Yen), Unlike the floating currency GBP, EURO is kinda fixed. But I understand that it's not a single country currency. I remember that one time I stopped trading EURUSD cos its volatility is relatively small but above all, I found that its patterns sometimes are not consistent with price action. Have a look at yesterday's daily chart, if it was a floating currency, it should have depreciated instead of appreciated yesterday (the one in green circle). You might ask why is that? All I could say in terms of price action is that, EUR has to depreciate first before there is any uptrend, surely, when there is a downbar on the top of rally, then the next bar should be at least lower high and lower low, and that's what I always observe from GBPUSD. Still EURUSD is kinda predictable on intraday timeframes, I am just saying it's not on daily timeframes. So after yesterday's ridiculous loss, I will give up on seeing the forest and only focus on trees when trading EURUSD. But I feel its kinda risky to trade EUR when I can't see the forest on the daily time frame...will see how it goes... Although I don't really believe that monthly chart works on Forex market cos unlike the stock market, dealers close their positions by the end of daily session. But even if I assume that it works, June's depreciation bar (the lower low and lower high) does not really indicate that there will be bullish market from July cos June's volume is higher than the previous bar. it would have been much better if all EUR members use their own currency...Seriously, why do they want to use a single currency that does not fit and ends up like Greece...I guess apart from Britain, no other members in EU have confidence in its economy .
What on God's green earth are you talking about? I didn't understand a single sentence in this post. And yes, the Euro is a floating currency.
I've got frustrated and upset after yesterday's loss. When I make a loss, I usually find out why. Given that Thursday's depreciation on the top of a rally on EURO, I initiated a short position, expecting EUR to at least form lower high and lower low on Friday (so that its price movement is consistent with price action). But unlike GBP, EURO isn't a completely floating currency , to some extent, it's fixed ...
The above isn't true. What is true is that you had a losing trade and simply need to move on to the next one.
Given that EURO is the most liquid currency among European currencies, its volatility is smaller compared to GBP and other European currencies. The implication is that like Yen, to some degree its price movement is limited to bring price stability to EURO. Have a read on Monetary policy for euro zone countries published by European Central Bank. Yep, I will move on ... but I hate to find out EURO is not a completely floating currency ...
Dude, the pound is a banking stock on crack. Their entire economy is financial services and banking. They are highly sensitive to any risk. THAT is why the pound is volatile. The Euro is the opposite. And where were you when the Euro went from 140 down to 103? That is not stability Nancy. You need take some time off over the holidays and read some economics books. You really should not have real money on the line till you start understanding some really basic relationships.
We are not on the same page. You are talking about a price volatility caused by Brexit and I am talking about daily average price volatility. And if it was not Brexit, EUR would not even have appreciated to 140 either.
Forget Brexit. The pound has been the most volatile G10 currency going back 100 years. Their entire economy is finance. Therefore they are highly sensitive to credit issues. Go back to 2008 and look at their volatility.
So do you mean the price action works on EURO daily time frame? ok, then I will download the daily data over past 10 years from Thomson Reuter Tick History today. I have done GBPUSD but I haven't done EURUSD. Thanks