You may already know that the forex market is a massive marketplace for any individual that involves options to trade many currency pairs. Professional traders always choose the right asset to trade. The appropriate assets or potential assets enable opportunities to make sufficient profits from the financial market.
However, listing any pair on the best tradable currency pairs list depends on several facts. Among others are the availability of information for both participant currencies, sufficient volatility, global acceptance, frequent trading options, etc.
This article lists the top five FX currency pairs besides trading strategies with chart attachments and top pros/cons for them.
What are the top five currency pairs?
The FX market has no specific trading hour; it is open 24-hours during five days of the week in different time zones such as Newyork, London, and Asian sessions.
Many brokers offer hundreds of currency pairs containing major, exotic, and cross forex pairs to trade using various platforms. For example, the USD/CAD represents how much CAD or the quoted currency needs to buy one USD unit or base currency. Here another term comes “the spread,” which is the difference between the bid-ask price of any currency pair.
Major pairs
When paired with the USD, the other most significant currencies of the world that make potential currency pairs to investors, these are attractive currency pairs to global investors due to high liquidity, low volatility, sufficient movement, and lower spreads.
The most popular and traded major currency pairs are EUR/USD, USD/JPY, USD/CAD, USD/CHF, GBP/USD, etc.
Cross pairs
Cross pairs don’t involve USD as any base or quote currency. Popular cross currency pairs are GBP/JPY, EUR/GBP, EUR/JPY, etc.
Exotic pairs
These pairs are not common in global transactions; you can find them thinly trading in the forex market. These pairs can involve market depth lackings; low volume can be highly volatile, etc. Some common exotic pairs are AUD/NOK, CAD/SGD, CHF/SEK, etc.
The top five tradable currency pairs are USD/JPY, EUR/USD, EUR/GBP, GBP/USD, USD/CHF.
How to trade top currency pairs
We choose these pairs on our top list depending on many attributes. These pairs are the most traded and with the most liquidity. Most brokers offer to exchange these currency pairs to traders with low spreads.
You can conduct technical and fundamental analysis for these currency pairs as news publications are regular for each participant’s currencies. You can use technical tools and indicators to these currency pairs as trading platforms offer.
A short-term trading technique
We use the two most popular indicators in our short-term trading technique, the parabolic SAR beside MACD. Parabolic SAR dots take place on different sides of price candles after any swing points, high or low. You can consider an uptrend pressure when you see the dot below price candles and vice versa.
Meanwhile, the MACD indicator has two dynamic lines and histogram bars of different colors to show the market context. This strategy is suitable for any time frame; we recommend using a 15-min chart or above to get satisfactory results.
Bullish trade scenario
Check these conditions at your target chart:
- Parabolic SAR dot takes place below price candles.
- MACD dynamic blue line crosses the dynamic red line on the upside.
- Both red and blue lines’ direction is upward of the MACD window.
- MACD green histogram bars take place above the central (0.0) line.
Entry
When these conditions above match with your target asset chart, place a buy order.
Stop loss
The stop loss level for your buy order will be below the current low with a 5-10 pips buffer.
Take profit
Close your buy order when:
- Parabolic SAR dot takes place above price candles.
- The dynamic blue line crosses the dynamic red line on the downside at the MACD window.
- MACD red histogram bars take place below the central (0.0) line.
Bearish trade scenario
Check these conditions at your target chart:
- Parabolic SAR dot takes place above price candles.
- The MACD dynamic blue line crosses the dynamic red line on the downside.
- Both red and blue lines’ direction is downward of the MACD window.
- MACD red histogram bars take place below the central (0.0) line.
Entry
When these conditions above match with your target asset chart, place a sell order.
Stop loss
The stop loss level for your sell order will be above the current low with a 5-10 pips buffer.
Take profit
Close your sell order when:
- Parabolic SAR dot takes place below price candles.
- The dynamic blue line crosses the dynamic red line on the upside at the MACD window.
- MACD green histogram bars take place above the central (0.0) line.
A long-term trading strategy
We use the golden crossover beside the RSI indicator in our long-term trading technique. The EMA 50 (green) and EMA 200 (blue) lines are on the chart. This strategy delivers excellent trade ideas on the D1 chart.
Bullish trade scenario
Observe your target asset chart when:
- The green EMA (50) crosses the blue EMA (200) on the upside.
- The RSI dynamic line is above the central (50) level and heads toward the upper (70) line.
Entry
When these conditions above match with your target asset chart, place a buy order.
Stop loss
The initial stop loss level will be below the current swing low.
Take profit
Close the buy position when the green EMA (50) crosses the red EMA (200) on the downside.
Bearish trade scenario
Observe your target asset chart when:
- The green EMA (50) crosses the blue EMA (200) on the downside.
- The RSI dynamic line is below the central (50) level and heads toward the bottom (30) line.
Entry
When these conditions above match with your target asset chart, place a sell order.
Stop loss
The initial stop loss level will be above the current swing high.
Take profit
Close the sell position when the green EMA (50) crosses the red EMA (200) upside.
Pros and cons
| Pros | Cons |
| Most brokers allow trading these currency pairs. | The short-term trading technique can fail due to macroeconomic events. |
| Spreads are low. | Requires specific fundamental and technical knowledge to trade these pairs. |
| Allow frequent trading positions. | The spread varies for different brokers and fluctuations in volatilities. |
Final thought
Finally, these are the top five best tradable currency pairs besides many other pairs: NZD/USD, AUD/USD, etc. These strategies above apply to any currency pairs with sufficient volatilities.
