5 Most Predictable Currency Pairs II

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Some currency pairs tend to “play by the rules” of technical analysis – when approaching a clear line of resistance or support, the pair will bounce back. And if the pair has the momentum to cross the line, it makes a clear break and doesn’t look back. But not all currency pairs are equal. Some are more predictable than others. Here are my top 5, with brief explanations:

  1. AUD/USD – respects old and new lines alike.
  2. EUR/GBP – after making a break, it tends to quickly mark the extent of the move, and to range-trade in the new zone.
  3. USD/CHF – despite the interventions by the SNB, the pair respects lines.
  4. EUR/CAD – Take each side of this cross against the dollar, and you don’t have a predictable pair – but the cross moves nicely.
  5. GBP/USD – While wider stops are necessary here, the pair works well.

This is a follow up of a similar list of most predictable pairs made back in April 2009.

Unpredictable currency pairs tend to be hesitant, make false breaks, suddenly surprise and are harder to analyze. Here’s the list of unpredictable currency pairs.

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Do you find these currencies predictable, or not? If not, what are your favorite currency pairs?

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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.

10 Comments

  1. GBP.USD is certainly a safer trade than the EURO.USD. The GBP.USD moves are more steady and have woomph! whereas the EURO.USD is dangerous behaves like AC/DC current…….a killer.

  2. Exactly Ivan, nowadays the EUR/USD is unpredictable……was not like that in times past, but those days we had huge orders either side keeping the moves steady.Those large orders have disappeared .

  3. I trade EUR/USD most of the time, and yes it is unpredictable nowadays. GBP/USD? Nice pair indeed

  4. TradeProfits on

    In the last couple of weeks I dont think USD/CHF has been easy to trade.Lots and lots of fakeouts. I almost feel like trading the fade of a break out on this pair as it seems to be a daily thing by now..

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  7. Nice little list. Quite valuable info IMHO. Just sticking to tight rules on these pairs using your info can be quite profitable.

    You are bang on about G/U. It trends nicely but forget about trying to do it with tight stops.

    I disagree that you do not include E/U. It is very trendy and often obeys technical rules. You just have to be a bit more aware of news events with this pair. A simple rule is avoid this pair around big news events.

  8. Thanks Fred! Yup, the pound moves faster, but generally respects trends. The Euro moved from the predictable list to the unpredictable due to so many news events about the debt issues, that make it too choppy.

  9. I am a Newb to Forex. As in equity trading, knowledge is only useful when properly applied. What is submitted is helping me to focus on the pairs which provide the greatest consistent profit potential. Knowing what is in your basket brings greater confidence than uncertainty. The pairs listed are my basic trading positions. With the pending US QE2 and potential ‘currency war’ these may be subject to change.

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