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EURUSD EUR/USD
Euro to US Dollar
Euro to US Dollar
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The EURUSD surged by 4.5% in just one week, reacting emotionally to news from Germany. This rapid rally is unprecedented since March 2009, and such sharp movements rarely occur without a subsequent pullback. A correction is essential for the pair to sustain its upside trajectory in a more stable manner. It would help alleviate extreme overbought conditions, as prices have significantly deviated from the average—a scenario last seen in mid-July 2023.
Although the EURUSD failed to reach its initial targets of 1.09500–1.10500 on the first surge, a correction could set the stage for another attempt. The retracement might bring the pair down to 1.06000 before resuming its climb. This presents an opportunity for a short trade from 1.08200–1.08600, with a stop-loss placed at 1.09400.
Euro to US Dollar
- The pair has the highest liquidity in the market and a vast number of trads are made with the pair. So, its movements largely indicates the behavior of the currency market in general. The pair is the easiest for technical analysis as it mostly follows the rules of it;
- The pair is likely the first one that every novice will meet during his/her first days in trading;
- Brokers usually have the lowest or zero trading fees on the pair. Brokers sometime give positive swaps on the pair, so a trader may make some money while keeping it for the longer term, and getting the profit on positive swap;
- The U.S. Dollar, or Greenback, is the leading currency in this pair, so it has the most influence on its movements. So, factors affecting the U.S. Dollar should be especially highlighted during technical and fundamental analysis of the pair;
- The EUR/USD is largely driven by two major economies and actions of the two largest central banks – The Federal Reserve (Fed) and European Central Bank (ECB). So, a trader should be focusing on macroeconomic data for both economies, including GDP, Consumer Price index (CPI), labour market indications, and statements of the central bank officials with a focus on the top officials of the Fed and ECB;
- U.S. 10-year Treasuries yields to German 10-year Bund ration is an indication of the strength of either currency. The higher the value, the stronger the Dollar;
- EUR/USD has a strong correlation with other European currencies, like the British Pound to the U.S. Dollar (GBP/USD) or the U.S. Dollar to the Swiss Franc (USD/CHF), and with cross rates of the Euro to other currencies. The pair has a strong exposure to USD/JPY, USD/CAD, and some other currency pairs.
| Ticker | EURUSD EUR/USD |
| Contract value | 100000 EUR |
| Maximum leverage | 1:500 |
| Date | Short Swap (pips) | Long Swap (pips) | No data |
|---|
| Minimum transaction volume | 0.01 lot |
| Maximum transaction volume | 70 lots |
| Hedging margin | 50% |
| USD Exposure | Max Leverage Applied | Floating Margin |
|---|
