5 Most Predictable Currency Pairs

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There are forex pairs which will slow down and bounce back as they get close to a distinct support ro resistance line. If they do have strong, determined momentum, they will break through without looking back. These pairs, that tend to obey the rules, are the more predictable ones. Not all of them are. Here is a ranked list of the top 5, with characteristics of every one of them.

The nature of currency pairs tends to shift over time. Some move up the list, while others lose their charm and move down and sometimes out of the list. This is due to many factors, that change. This is an updated list, made towards the beginning of Q3:

  1. USD/CHF: The Swiss franc moved to the top. Interventions by the SNB belong to the past, despite the recent strength. The pair tends to break to an all-time low, then range back to the previous low. The ranges are very distinct. A break to the upside will likely meet another previous low.
  2. AUD/USD: The Australian dollar still isn’t in its good old days, but the performance is definitely improving. Resistance lines tend to work in a smoother manner than support lines, but they also work well.
  3. EUR/GBP: The cross tends to move in ranges, with relatively clear barriers. The narrower ranges made it somewhat harder, but it seems to return to wider ranges.
  4. NZD/USD: The recent strength of the kiwi, a currency sometimes overlooked by traders, made its moves much more predictable. This applies to support and resistance lines alike.
  5. GBP/USD: While the ranges are wider (and so should stops be), the lines are rather distinctive, especially towards the borders of the long term wide range. This pair closes the list.

Are you trading any of these pairs? Do you find them predictable or rather unpredictable?

As you can see, two major pairs are missing from the list. USD/JPY was never a fun pair. It can move in very frustrating narrow ranges and break lines in very slow and annoying manners.

Also the most popular pair, EUR/USD, is missing. The Greek crisis, with the flood of news around it, make trading on this pair quite choppy. This pair had better days, that might return when things calm down.

Further reading: the previous list made for Q2 2011.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

8 Comments

  1. Pingback: Trading the Greek Vote? AUD/USD Would Be A Better Bet | Forex Crunch

  2. Its really good preparing some more reliable conditions as its called here “Most Predictable Currency Pairs” when the market of a pair is too volatile

  3. Pingback: Greek Parliament Passes Vote – EUR/USD Still Capped | Forex Crunch

  4. You should add CAD to the list. However, I would say that predictability is relative, that is, it depends on strategy and time frame.

  5. Pingback: EUR/USD Outlook – July 4-8 | Forex Crunch

  6. I have had good luck trading the CAD and the AUD on a long time frame. These are commodity currencies, and more and more people are chasing fewer and more expensive commodities. You don’t need scary amounts of committed capital to play the commodities if you play these two pair.
    You need to take smaller positions to play longer time frames, but the payout is more secure.

  7. Pingback: NZD/USD Should Get More Attention | Forex Crunch