eur/usd signals

EUR/USD can be said as by far the most traded currency pair, with a spread noticeably the lowest of all.

EUR/USD pair is a great pair for novices as behaves almost invariably according to simple principles that novices find easy to study and master in the very beginning.

The EUR/USD pair is a reasonably stable currency and is seen as a safe trade with less volatility and fewer risks.

Due to global exposure the EUR/USD pair is one of the easiest, if not the easiest currency to apply analysis including both fundamental and technical.

Compared to the other major currency pairs traded in the forex market, EUR/USD history is relatively brief, spanning little more than ten years since trading began in the Euro at the end of the 20th century.

Nevertheless, the common currency for the European Union (EUR/USD) came about as the result of a long and drawn out process, which led to the increasing monetary unification of Europe and the adoption of the Euro by many of the nations participating in the Union.

EUR/USD exchange rate history starts when the Euro was first issued in January 1999. It opened at 1.1795, although the rate then fell considerably in value.

Nevertheless, the increasing popularity of the consolidated Euro currency led EURUSD to gradually increase, crossing back above the psychological 1.0000 parity level in November, 2002.

The currency pair continued to trend higher, eventually attaining its all time high level of 1.6037 in July, 2008 in the wake of the U.S. sub-prime mortgage crisis that led to the collapse of Lehman Brothers in September of that year.

Since reaching its peak, EURUSD has traded in a wide range bounded on the downside by a low of 1.1876 seen in June of 2010 as the Greek sovereign debt crisis increased worries about a possible Eurozone breakup.

As Economic and Trade Related Activity is highest in the US and the Euro zone, therefore it is not a surprise that the two currencies that make up the EUR/USD are the most traded in the foreign exchange markets.

Due to the fact that the EUR/USD is the most active currency pair in the forex market, the transaction costs and spread (the difference between buying price and selling price) is the least of all the currency pairs.

The spread of the EURUSD for some brokers is only 0.8 pips compared to the EURCAD spread, which is often 10 pips or more.

The EURUSD is a very predictable currency pair. Since the ECB’s monetary policy thrust is straightforward and unambiguous, the factors that affect the value of the Euro are pretty much straightforward and easy for traders to use for trading decisions.

The USD is the global reserve currency, as all traded commodities and international transactions are USD denominated.