Tuesday, February 24, 2009

Trading behaviour of EUR/USD

The deep liquidity and tight trading spreads in EUR/USD make the pair ideal for both shorter-term traders and longer-term traders. During normal market conditions, EUR/USD tends to trade tick by tick, as opposed to other currency pairs. Less liquid currency pair, like GBP/USD, typically fluctuate in a far jumpier fashion, which is reflected by the wider price spread.

When you spot EUR/USD is heading to its support or resistant level do not jump in to trade. This currency pair tends to move and pull back in a nice fashion. If you are planning to sell wait for the pull back to sell to gain more pips.When it comes to trading around the technical support and resistant levels, EUR/USD can try the patience of even the most disciplined traders. This currency pair will linger around from minutes to hours around the support and and resistant levels.
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