Forex trading is all about buying and selling currencies in the hope of making a profit. However, not all currency pairs are created equal, and some tend to trend more than others. In this article, we’ll take a closer look at which forex pairs are currently trending and why.
Before we dive into which forex pairs are trending, it’s important to understand what a trend is. A trend is a general direction in which the price of an asset is moving. In forex trading, a trend can be either bullish (upward) or bearish (downward).
Now that we’ve got that out of the way, let’s take a look at some of the forex pairs that are currently trending.
1. EUR/USD
The EUR/USD is perhaps the most popular forex pair in the world, and it’s no surprise that it’s currently trending. The pair has been in a bullish trend since the start of the year, and it has risen by over 1,000 pips since January. This trend is being driven by a number of factors, including a weaker US dollar, positive economic data from the eurozone, and the European Central Bank’s monetary policy.
2. GBP/USD
The GBP/USD is another forex pair that’s currently trending. The pair has been in a bullish trend since the start of the year, and it has risen by over 1,500 pips since January. This trend is being driven by a number of factors, including positive economic data from the UK, increased optimism about Brexit negotiations, and a weaker US dollar.
3. USD/JPY
The USD/JPY is a forex pair that’s currently in a bearish trend. The pair has been falling since the start of the year, and it has dropped by over 700 pips since January. This trend is being driven by a number of factors, including a stronger Japanese yen, concerns about the US-China trade war, and the Federal Reserve’s monetary policy.
4. USD/CAD
The USD/CAD is another forex pair that’s currently in a bearish trend. The pair has been falling since the start of the year, and it has dropped by over 1,000 pips since January. This trend is being driven by a number of factors, including a stronger Canadian dollar, the Bank of Canada’s monetary policy, and concerns about the US-China trade war.
5. AUD/USD
The AUD/USD is a forex pair that’s currently in a bearish trend. The pair has been falling since the start of the year, and it has dropped by over 900 pips since January. This trend is being driven by a number of factors, including a weaker Australian dollar, concerns about the US-China trade war, and the Reserve Bank of Australia’s monetary policy.
So, why are these forex pairs trending? The answer is simple: it’s all about supply and demand. When there’s more demand for a currency than there is supply, the price of that currency will go up. Conversely, when there’s more supply than there is demand, the price of that currency will go down.
In the case of the forex pairs mentioned above, there are a number of factors driving the supply and demand for each currency. These include economic data, monetary policy, geopolitical events, and market sentiment.
In conclusion, there are a number of forex pairs that are currently trending, with some in bullish trends and others in bearish trends. These trends are being driven by a range of factors, and it’s important for forex traders to keep a close eye on the news and events that are impacting each currency. By doing so, they can identify trends early and make profitable trades.
