5 Most Predictable Currency Pairs

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.