Trade the most exciting Forex pair with SimpleFX

Aussie/Kiwi may be the best Forex Trading pair. You can give it a try with the fastest-growing margin trading app SimpleFX WebTrader. Make trades with high leverage. Get a huge upside and limited downside thanks to no minimum deposits and negative balance protection for each account. Open an account in cryptocurrency (or any other fiat money), and enjoy the lowest spread throughout October. Finally, earn a $500 cashback paid in bitcoin trading with SimpleFX.

While the strategies that are based on your interpretation of the events are popular among cryptocurrency enthusiasts, who may have access to the best first-hand knowledge about the coins they are trading, it may not be the best strategy when trading Forex.

In this post, I will write about a currency pair that may suit traders that want to make decisions based on technical analysis, not news. In this case, you want to avoid the drama and forex mainstream. You don’t want to trade pound sterling among the Brexit turmoil. You want volatility, strong trends with no prolonged consolidations on relatively high volumes – a choppy market trading sideways.

There is a currency pair that shares these features – it’s AUDNZD called within forex lingo Aussie/Kiwi.

Both currencies are considered risk-on. This combination helps you avoid situations where a big economic or political event blows-up the strategy you built on the technical analysis. If you are trading a risk-on currency – like the Australian dollar or New Zealand dollar – against a risk-off currency that is considered a safe investment in times of high uncertainty – such as Japanese yen – you are prone to unexpected situations.

Trading two risk-on currencies at the same time make your trading strategy more robust.

On the other hand, both Australia and New Zealand have been able to stay away from global headlines. There’s hardly ever a top breaking news story about these markets.

As for the currency pair itself, it has all the qualities a day trader looks for. It is highly volatile (although not the most volatile pair there is, which may expect the relatively low popularity of Aussie/Kiwi).

As you can see in the 1D chart below AUDNZD trends strongly. There are very short sideways drifts in the pair, and most often you can identify them clearly as consolidation periods due to a lower trading volume.

Strong trends are much easier to trade. Nevertheless, many forex traders choose pairs that are very tricky. Just take a look at the very popular EURUSD. You can see very long periods where the market is undecided and it is very difficult to make money trading at this time frame. These sideways trends are not obvious consolidations, so it’s even more difficult to implement any trading strategy effectively.

The volatility is quite strong since the two currencies although in the same region don’t correlate much. Being relative neighbors the two economies are perceived more like rivals big institutional investors can choose from.

One last but not least feature of the Aussie/Kiwi pair is the early timezone. If you are trading daily candlesticks from Europe, the Americas, Africa or the Middle East, the news that may affect your strategy come very early in the cycle. You can adjust your positions if anything unexpected happens, which makes it an even more comfortable forex instrument for traders that want to focus on technical analysis rather than reactions to the news.

Because of all the above characteristics, AUDNZD is a good pair to test your trading system, since there are not many external events that may blow up your otherwise sound trading strategy.

Trade AUDNZD with the best margin trading app, and win a $500 cashback. The limited-time offer is available for everybody.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

 

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