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What Is the Best Currency Pair to Trade?

Today, I am going to talk about the best currency pairs for trading. I know that Senior LuckScout followers are surprised, because they know what currency pairs we trade and we are not dependent on any special pair. However, what I am going to talk about in this post is for those visitors who have found this site recently, or probably today.

I am always asked what currency pair is the best to trade. This is the question that forex traders ask a lot on forums and discussion boards, and unfortunately I always see some unprofessional answers to this question that mislead the novice traders.

Choosing a proper currency pair depends on the trading style you want to have. If you want to be a day trader, then you have no option but choosing one single currency pair to stick to.

As a day trader, you will have to focus on the shorter time frames, and so the positions you take will not last more than a few to few hours. Therefore, you will not be able to catch the big movements, and so you have to trade a currency pair that has a low spread and proper liquidity. EUR/USD has the lowest spread among all the currency pairs. It is the most favorite currency pair for day traders. However, you can also trade GBP/USD or USD/JPY too.

GBP/JPY is another currency pair that many day traders love. Although its spread is normally higher than the other major currency pairs, but as it moves in a large scale, its high spread can not be any problem. It is a good currency pair for day trading. EUR/JPY is also a favourite currency pair for day traders.

This is all about choosing the best currency pair if you want to become a day trader. Currency pair is not a problem if a trader wants to become a day trader. It is the day trading itself which is the main problem. We have already talked about this a lot on LuckScout. There are some articles on LuckScout that explain about the hassles that day trading has. You can refer to those articles and think more if you want to become a day trader. Here I just tell you one thing. I have never seen any consistently profitable day trader. One in a thousand day traders can make some profit for a limited time, but none of them can become consistently profitable. Here is a couple of articles about this topic.

If you like to become a swing trader, then you don’t have to be limited to any special currency pair. You have to trade the long time frames, like daily, weekly and monthly, and you will have to hold your positions for several days or even weeks. As you are not going to locate a trade setup on the long time fames every day, then you will have to check several currency pairs every day.

The only thing you have to take into consideration as a swing trader is that you’d better to forget about the exotic currency pairs, because they are not liquid enough and their spread is usually too high and unstable. You don’t have to trade the exotic currency pairs, simply because there are enough number of regular currency pairs that you can trade as a swing trader.

What Is The Best Way?

Here on LuckScout, we follow a trading system which is based on the candlesticks patterns and Bollinger Bands. Sometimes we also use technical analysis to support the validity and strength of the trade setups we locate. This trading system was not invented by us. Indeed, it has been used by professional and experienced traders for decades. We have learned how to use it in the safest and easiest possible way. It has been working for us for years and we are so happy with it.

The most important advantage of this system is that it is strong and reliable, and at the same time simple and very easy to use. We have made it as simple as possible. We have learned that, only trading the long time frames can be profitable in long term. Therefore, we use our trading system to check the long time frames of several currency pairs every day. We trade the daily, weekly and monthly charts. You have to check the daily time frame once every day when the daily candlestick is closed and the new one is opened. The weekly time frame has to be checked every weekend, and the monthly time frame at the end of each month when the new monthly candlestick opens.

It doesn’t take us more than 30 minutes to check the daily time frame of over 20 currency pairs. Here is the best currency pairs you can trade as a swing trader who follows our trading system:

EUR/USD , GBP/USD , USD/CHF , USD/JPY , GBP/JPY , EUR/JPY , USD/CAD , AUD/USD , NZD/USD , GBP/AUD , GBP/CAD , AUD/JPY , NZD/JPY , CAD/CHF , CAD/JPY , GBP/CHF , EUR/AUD , EUR/CAD , CHF/JPY , AUD/CAD , AUD/CHF , NZD/CHF , EUR/GBP , Gold.

I was not used to trade some of the above currency pairs, but as some of the LuckScout followers asked me to analyze them, they are now added to my platform.

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“Whether you think you can, or you think you cannot, you are right.” – Henry Ford



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63 thoughts on “What Is the Best Currency Pair to Trade?
  1. singh says:

    Thanks for the daily tip. Its good reminder for all the followers.

  2. Nick says:

    Hi Chris I opened a long position on the close of the daily USDCAD candle (14/10/2014), because it broke through the daily resistance and mainly because of the long trade setup formed on 09/10/2014 (bullish engulfing). 14/10/2014 daily candle is also a strong bullish candle.
    What do you think? LOL
    Thanks again for what you are doing.

    • Chris says:

      Hi Nick,

      I don’t think that was a good decision. You went long at the close of a big bullish candlestick right below a strong resistance level on the weekly chart. That is too risky. USD/CAD can reverse at any time. At least if you had taken the position when the 2014.10.09 closed above the middle band, that would be understandable, and now you could either close your position and collect some profit, or move your stop loss to breakeven and leave the rest to luck.

    • Ruth M says:

      Hi Chris
      I am new to…signed up with some org that claim would mentor me…but nothing happened.
      I have an IB account.
      I’d like to trade but where do I start? (That’s my “one question”).

      I’m looking at USD/SGD because in the long run, SGD will decline but I don’t know how to configure this currency pair in IB. (I’ve sent them an email…hope they reply).

  3. dr mohammad says:

    dear mr chris:

    pls, reply how you can calculate gold position size, i use mt4..

    regards

    n.b: i do not have any relation with any broker, and i replied to your question regarding the platform i use innocently, without any intention to promote any broker..i apologize for any inconvenience..

    • Chris says:

      Hi,

      1. Press Ctrl+U.
      2. Find gold, click on it and then click Properties button.
      3. If the “contract size” is 100, then 1 pip gold is $1. If it is 10, then 1 pip is $0.1.

      There was no inconvenience at all.

  4. ayoub says:

    God bless you Chris .

  5. Peter Wagner says:

    Hi Chris
    Thanks for the GBPCAD update – this trade has been an exceptional experience in applying the discipline / trust / confidence rules.

    Would you now change the Trendline to the top of todays candle – after close?

    • Chris says:

      Hi Peter,

      You are welcome.

      No, I don’t change the line, because this one looks valid and just the shadow of the today’s candlestick has broken above it. It looks like a valid reaction to a valid line so far. I would change the trend line, if for example the today’s candlestick closed above the line, but the next candlestick closed below it again. It meant that the line was not valid and had to be adjusted.

  6. agyusant says:

    Thank you chris..

  7. Bob says:

    Hello Chris,
    Regarding day traders, Kamel calls himself a day trader though he uses the daily chart. I like the simplicity of his technique and am tempted to try it, but am a little nervous after your comments about day trading!
    Obviously he usually tries to set his target so it would be hit on the day, but I assume that his positions would often run for more than a day before the target is hit.
    Presumably your comments about day trading wouldn’t apply to this technique? I assume that because he doesn’t always close out on the day his method is not what is generally referred to as day trading?
    Sorry for getting into detail on this term, just looking for clarification! Thanks.

    • Chris says:

      Hi Bob,

      As far as I know, he trades the way that I do, and sometimes he holds his positions for several days/weeks. Maybe he has used that title for his post to attract the attention of the day traders, and then let them know that working with the short time frames is wrong. Kamel is as tricky as Bollinger Middle Band 🙂

  8. singh says:

    Very good analysis for USD/CAD. Wonder why I wasn`t looking like that 🙂

    • Chris says:

      Singh! You are a Canadian and you don’t trade USD/CAD??? This is an outrage 😡

      • singh says:

        I guess I have most hits on the page and that`s why you looked and checked that I am Canadian. lol

        • Chris says:

          I don’t know how to check this. The cpanel that I reply the comments through, shows the location of each commenter.

          • singh says:

            You should use Google analytics ( http://www.google.ca/analytics/ ) to analyse visitor behavior, how they came to your site, where they came from, what did they searched in google and how they found your site, most visited pages, most read pages, number of new vs regular user etc. Its “must have” tool to analyse ur site.

            If you dont know how to setup, I can do it for you but you need to give me access. However its very easy, take few minutes

          • singh says:

            Just forgot to mention. Use free one, dont get paid one. Free one is more than enough unless you are in marketing business.

          • Chris says:

            Thank you Singh. But I don’t care about these things. I know that some people visit the site and read the articles. I don’t care about the statistics.

          • singh says:

            Absolutely no problem, but since earlier you mentioned going facebook, I assumed you wanted to market your site (which is not bad). Just wanted to share similar tools.

          • Chris says:

            Thank you for your support Singh.

  9. Nick says:

    Thank you Chris

  10. Lawrence Smit says:

    Hi Chris,

    Am I right to be long in the GBP/CAD trade. How many trades do you have running at a time or do you trade all the 100 set ups. if you trade all the 100 set ups, just for interest sake, what was the most trades you had running at one time?

    • Chris says:

      Hi Lawrence,

      Welcome to LuckScout 🙂

      Yes, we are long with GBP/CAD.

      I trade all the 100 setups. Even if they hit my risky SL, I enter again.

      I think I have never had more than 2-4 open positions.

  11. Lawrence Smit says:

    Hi Chris and I really want to thank you for all the hard work or experience you share with us.

  12. Otto says:

    Thank you for the great analysis!
    Finally one of my AUD/JPY positions hit the ~3.5x target. This was my best trade so far. Thank you so much for it.
    The other one I have is GBP/CAD. I practice to be patient and disciplined not to close it because of not moving strongly 🙂

    • Chris says:

      Congratulations Otto 🙂

      • singh says:

        Hi Chris,

        Related question: I use your method of trading i.e. Opening two positions, setting second to breakeven when 1st hit 3x SL target. However positions like GBP/CAD, your SL is like 250 pips (Safe one) which means your target should be around 750 pips.

        I know good trade setup sometime hit these big target but it is not that common. Do you change your target to 1:1 or 1:2 when you see setup not progressing well ?

        • Chris says:

          Hi Singh,

          If we want to do it, we will lose the discipline and will do it for all the positions. Not all the trade setups are supposed to hit the target right away. When the setup is really strong, we’d better to trust it. This is what I do personally.

  13. smalltalk says:

    Hi Chris,
    I’m new here and I’d like to be sure, in order to have a long setup on AUS/USD, there should be a break to bollinger lower band? In which article did you explain about this ‘rule’?

    Thank you

  14. Redpants says:

    Thanks again Chris . I watch over 40 pairs just for the practice it gives me but also teaches me discipline , not to be tempted in 4 weeks not seen a 100 set up in any of the exotic pairs !
    From 24th October my broker is offering really low spreads for Micro lots
    EUR /USD 0.2 PIP AUD /USD 0.3 , All other majors 0.4 & exotics 0.6 .
    Chris they seem very good spreads !
    Good luck all in the GBD / CAD tried so hard to close above the middle Bollinger yesterday but acting as really strong resistance . Hopefully weak CAD CPI figures will help us !

  15. jeff says:

    Chris, great analysis and reinforcement (can’t get enough), thank you. My USDCAD chart is showing more of a giant spinning top than yours is. I don’t trust a short – unless it’s a very large bear candle break below the 10/15 D1. My W1 is showing an inside bar for last week. I think I will wait to see where the current weekly candle closes. If it closes within last week’s IB, it may bounce around for awhile. If it closes above or below that IB, I think that will be a better indication of direction.
    Of course, it won’t surprise me if your daily candlestick + BB method rules again and none of my analysis matters 😉

    Jeff

  16. BIM says:

    Hi Chris, good day to you. I travelled around China for a month many years ago, its a beautiful country that makes you feel like you have gone back in time, except for for the modern areas of course. Hope you are having an enjoyable trip. I read somewhere here that you don’t use RSI for overbought (OB) or oversold(OS) levels. What do you use it for and how can you tell if a pair is OS or OB? Thanks

    • Chris says:

      Hi BIM,

      Thank you for your comment and your kinds words.

      I don’t use RSI for anything. I don’t care about overbought/oversold when I locate a 100 score trade setup that meets all the requirements. Please see the examples I have in my articles and you will see what I mean. Please start from this article:
      https://www.luckscout.com/become-a-profitable- -trader-in-5-easy-steps/

  17. behnam says:

    HI CHRIS
    THANKS A LOT FOR THIS WONDERFUL ARTICLE. THIS ARTICLE IS ONE OF THE BEST ONE I HAVE EVER READ. SHARPLY I NEED SOME THING LIKE THIS TO RECOGNIZE MY SELF BETTER. ALMOST IT WAS ABOUT ME.
    IS IT POSSIBLE FOR YOU TO PUT THE OPTION RESEARCH TAB ON THE SITE FOR RESEARCHING THE ARTICLE WE NEED TO READ MORE BY INTERNING THE KEY WORDS? I NEED TO READ AGAIN ABOUT THE SUBJECTED WHICH IS RELATED TO INTERA DAY CANDLE AND NOT POSSIBLE TO ACCESS AT ONCE.
    THANKS AGAIN

    • Chris says:

      Hi Behnam,

      You are welcome.

      I was also wondering why this site has not search form. I will have to ask my friend to add it. Thank you for reminding me.

    • Otto says:

      You can use Google as a workaround like this. Search for “resistance site:LuckScout.com” for example.

  18. Peter Wagner says:

    Hi Chris
    Sorry – accidently replied to a wrong page reference – just a note – the chart for CHFJPY is daily not weekly.
    thanks for all your instruction

  19. behnam says:

    hi otto
    what words should i search exactly in google?
    thanks

    • Otto says:

      If you would like to search for “resistance” (just an example) then you should type this to Google: “resistance site:LuckScout.com”. In this case it will only search on this site.

  20. behnam says:

    hi chris
    according to your instruction about ignoring some set ups, i realized if i have those set ups, they are very good in my country stock market because of especial limitations factors i told you. i had two position based on this method( candlesticks + bolinger bands) with good benefits up today from last two weeks. very strange. hope to be continue. thanks a lot for your instructions

  21. behnam says:

    thanks otto

  22. Jason says:

    Hello i cant find GBP/CAD on my mobile or mt4 platform. Any clue to why this is so? Thanks

  23. jason says:

    Thanks Chris I found it on the mt4 mobile app don’t see it in mt5 or the mt4 desktop i right clicked like you said, its no big deal ill just re install it if i can’t figure it out soon. Im still in early phase of demo trading but i do take it seriously. Oh hey how about a post about tricks and short cuts on platforms? Just a thought I know they all have manuals but who reads them lol I need to i just realized you can drag and drop your sl and tp on mt4 pretty cool. Thanks again.

  24. ik khan says:

    Hi respected sir:

    Thanks for this one…

  25. Michael says:

    There are four pairs in my own list (that i look at for daily candle trading), that are not on your list: EUR/NZD, EUR/CHF, GBP/NZD and AUD/NZD. Would you recommend to stay away from those pairs?

    • No. You can trade them too. Actually I am going to add them to my platform because LuckScout followers ask about them all the time. So I have to add them to the platform.

  26. bereket says:

    Hi Chris would you tell me please when you trade daily chart time frame: –

    When do you close your trade after you enter in to the market.

    Thank you

  27. titanium says:

    Where can I find the gold on my platform? I just can see the currency pairs. Thanks a lot.

  28. Nadi brh says:

    THank you Chris for the article

  29. Aristocrat emmy says:

    That could be an eye opener to me thanks sir