Newcomers to forex trading usually start off with the popular pairs: EUR/USD or GBP/USD. While these pairs are OK, these might not always be the best pairs to start trading with. I’m fond of the Australian dollar – AUD/USD, and I find it the most predictable pair. I chose this pair based on my experience and my observations. Using these social indicators, I found that I’m not alone.
The British Pound and the Euro are popular currencies. Many forex traders start with these pairs since they hear about them all the time. You hear about them all the time from brokers who offer low spreads on these pairs. Also on the web, these pairs are talked about very often, sometimes too often.
This talk can be too much, even confusing. Well, there are other pairs out there. Brokers don’t offer the best spreads on them, but we aren’t here for gaining an extra pip on the spread, but making more winning trades.
In my post about the 5 most predictable currency pairs, I ranked AUD/USD at the top of the list, followed by EUR/GBP. This was based on my experience and my constant observation at the markets. More predictable currency pairs obey the rules of technical analysis better than others. A distinct support or resistance line, will be the spot where the currency turns around, or if it breaks the line, it will go further in that direction. Predictable pairs have less false breaks.
Now my observation is supported by Currensee’s social indicators. I took a look at the community’s activity, which is based on real trades, and saw that 91% were winning on AUD/USD, taking long positions. Such a landslide victory means that the this is a very predictable pair, especially when the community was trading with the trend.
As you can see, at the time of writing, EUR/GBP, my second pick wasn’t doing well. Also note that the popular pairs, EUR/USD and GBP/USD made unexpected moves, to say the least. At the time of taking this screenshot, no one was reading these pairs correctly.
As the community grows, more trades will be listed, and these social indicators will be of higher significance. Currently, the community does better with some pairs more than others – the more predictable pairs.
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Full disclosure: I’m affiliated with Currensee.Get the 5 most predictable currency pairs