Calm currency pairs in the Forex market: criteria and examples

Different trading styles are used in Forex trading. Beginner traders get to know each of them before making their choice. Those of them who prefer aggressive style of trading inside the day choose high-volatile pairs as instruments for trading. Trading on such instruments allows you to take a good profit on strong movements. But this style of trading requires a lot of time and ability to maintain a stable emotional state. Therefore, it is not suitable for all traders. Some of them choose a conservative style of trading and prefer calm currency pairs.

Today we will talk about which trading instruments and why we can consider them calm.

Criteria for determining the “character” of a currency pair

For the beginning, let’s find out what criteria this or that currency pair can be classified as calm. This is, first of all, its volatility. The lower it is, the calmer the currency pair is. To analyze the volatility of trading instruments, it is very convenient to use special services available in the network. For example, on investing.com. That’s what it’s called the Forex Volatility Calculator. All a trader needs to do is to enter the necessary initial data: the time period for which it is necessary to calculate the volatility and the currency pair. As a result, the service will provide all the necessary information about the degree of volatility of a trading instrument. It may look like this, for example:

Safe currency pairsmay not leave the relatively narrow price range for a long time. However, I would like to warn that no matter how calm the couples may be, they can react actively enough to the release of important news. So you shouldn’t be completely relaxed. Strong movements are also possible on such currency pairs.

Examples of calm currency pairs

Sooth pairs should be searched among those trading instruments that do not have a dollar in them. There’s a lot of them.

I suggest you pay attention to the AUD/NZD pair. The economies of Australia and New Zealand are based on raw materials. In this regard, exports play an important role in their economic development. As the two countries have much in common, the impact on their national currencies is similar. This means that the AUD/NZD rate can be predicted with a high degree of probability of execution of the forecast. If this couple goes to the flute, it can be in this state for a long time. If a trend has started, it is likely that the movement in this direction will continue. The daily range of price movements is usually a few tens of points (for 4-digits).

EUR/CHF currency pair also refers to calm and predictable. As a result, it is suitable for beginner traders. Both currencies are European. For efficient trading it is necessary to follow European economic news and ECB meetings.

In conclusion, I would like to say that the calm currency pairs can be used by a trader to get a stable income. But it will be possible only if you have a working trading strategy.Fyodorov’s Inga24.12.2018