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Trade the most exciting forex pair with SimpleFX – ForexLive

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What AUD/NZD is a great pair to trade

Aussie/Kiwi may be the best Forex Trading pair.
You can give it a try with the fastest growing margin trading app SimpleFX WebTrader. Make trades with high
leverage.

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While the strategies that are based on your
interpretation of the events are popular among cryptocurrency enthusiasts, who
may have access to the best first-hand knowledge about the coins they are
trading, it may not be the best strategy when trading Forex.

In this post, I will write about a currency pair
that may suit traders that want to make decisions based on technical analysis,
not news. In this case, you want to avoid the drama and forex mainstream. You
don’t want to trade pound sterling among the Brexit turmoil.

You want volatility, strong trends with no
prolonged consolidations on relatively high volumes – a choppy market trading
sideways.

There is a currency pair that shares these
features – it’s AUDNZD called within forex lingo Aussie/Kiwi.

Both currencies are considered risk-on. This
combination helps you avoid situations where a big economic or political event
blows-up the strategy you built on the technical analysis.

If you are trading a risk-on currency – like the
Australian dollar or New Zealand dollar – against a risk-off currency that is
considered a safe investment in times of high uncertainty – such as Japanese
yen – you are prone to unexpected situations.

Trading two risk-on currencies at the same time
make your trading strategy more robust.

On the other hand, both Australia and New
Zealand have been able to stay away from the global headlines. There’s hardly
ever a top breaking news story about these markets.

As for the currency pair itself, it has all the
qualities a day trader looks for. It is highly volatile (although not the most
volatile pair there is, which may expect the relatively low popularity of
Aussie/Kiwi).

As you can see in the 1D chart below AUDNZD
trends strongly. There are very short sideways drifts in the pair, and most
often you can identify them clearly as consolidation periods due to a lower
trading volume.

AUD/NZD 2

Strong trends are much easier to trade.
Nevertheless, many forex traders choose pairs that are very tricky. Just take a
look at the very popular EURUSD. You can see very long periods where the market
is undecided and it is very difficult to make money trading at this time frame.
These sideway trends are not obvious consolidations, so it’s even more
difficult to implement any trading strategy effectively.

The volatility is quite strong since the two
currencies although in the same region don’t correlate much. Being relative
neighbors the two economies are perceived more like rivals big institutional
investors can choose from.

One last but not least feature of the
Aussie/Kiwi pair is the early timezone. If you are trading daily candlesticks
from Europe, the Americas, Africa or the Middle East, the news that may affect
your strategy come very early in the cycle.

You can adjust your positions if anything
unexpected happens, which makes it an even more comfortable forex instrument
for traders that want to focus on technical analysis rather than reactions to
the news.

AUD/NZD 3

Because of all the above characteristics, AUDNZD
is a good pair to test your trading system, since there are not many external
events that may blow up your otherwise sound trading strategy.

Trade AUDNZD with the best margin trading app, and win a $500
cashback. The limited time offer is available for everybody.

This
article was submitted by SimpleFX.

ForexLive

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