EURUSD is the most traded currency pair in the world. This pair represents the world’s two largest economies, the European Union and the United States.
What is EUR USD?
EUR/USD is the ticker symbol brokers use to quote how many US Dollars are needed to buy a Euro. The Euro-Dollar pair represents more than 80% of the total volume of currency traded on any given day.
Why Do Traders Like the EUR/USD?
Traders want the ability to buy and sell quickly and with the least possible cost. The Forex market is the most liquid in the world. The EUR/USD market is so deep that large blocks of currency can change hands without massive fluctuations in the price that would happen in a less liquid market. Individual traders can open and close EUR/USD positions 24 hours a day, five days a week. Brokers can usually fill orders in seconds.
The US Dollar comprises upwards of 85% of total forex trading volume. The EUR is second, and the Japanese Yen (JPY) is third. The EUR/USD pair is almost 40% of the trading volume. The high percentages mean that forex traders only need to concentrate their analysis on a handful of major pairs.
The Major Currencies and Trends
The high liquidity in the forex market tends to support long, clear trends that make technical analysis useful when looking for an edge.
You can see real-time EUR/USD (and other currency) prices for free and improve your technical analysis skills with this interactive chart.