EUR/USD Chart

EUR/USD: THE MOST TRADED CURRENCY PAIR

The Euro Dollar currency pair belongs to the group of 'Majors'. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.

In the last 5 years, the EUR/USD reached its maximum price of 1.2427 in January 2018 and a record low of 1.0532 in January 2017.

The indices that most impact can have on the its moves are the Dollar Index (that measure the value of the United States dollar relative to a basket of foreign currencies), S&P500 (American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ) and DOW (or DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).

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HOW TO USE THE CHART - OPTIONS TO CUSTOMIZE

If you click on Tools , you will see the diagram full screen with all the options and tools.

Horizontal bar options:
At the top of the EUR/USD chart, you have the following features for you to customize it:

• Save and Load: you can create and save your favorite configurations for future usage. You can also replicate a template from one diagram.
• On this chart, by default, you will see the EUR/USD but you can change it and choose another asset
• Timeframe: from tick-by-tick to yearly
• Types: candlesticks, line, bar,...
• Compare charts: you can analyze the price history of two assets and analyze relative performance over a period of time. You can also benchmark an instrument to an index.
• Show additional data on the diagram: Percentage scale (%): The first loaded Close price represents 0%. This mode is useful to compare the performance of several symbols; Volume: Show or hide the volume of the main symbol in a new panel; L: Show or hide Last Value
• Add indicator: choose among over 70 technical indicators to add. Indicators are applied to the price data of the main symbol in your diagram.
• Reload, Zoom in/out, Print, Export as PNG image, Set the zero point, Open in full screen, Sound notifications on/off

Vertical bar options: At the left of the EUR/USD chart, you have the drawing tools like trend lines, trend channels, Fibonacci retracements and many more to interpret the price development of a symbol. With most drawing tools, you have to define one or more reference points that indicate where the drawing object should be placed on the chart. You can later move these reference points by dragging them with the mouse.

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COMPLEMENTARY TOOLS

To complete your analysis of the EUR/USD, we recommend you to have a look at the EUR/USD Forecast Poll, an exchange rates heat map of where sentiment and expectations are going.

You can also consider using the FXS Technical Confluences Detector is an in-house tool, developed by FXStreet experts, that allows you to identify those price levels where congestion of indicators like moving averages, Fibonacci levels, Pivot Points occurs. Knowing where these congestion points are located is very helpful as it allows the trader to see these areas of support and resistance easily.

WHY USING A CHART TO TRADE THE EUR/USD?

Graphs are useful to forecast price movements by recognizing either patterns and trends or signals given by technical indicators. A chart is primarily a graphical display of price information over time.

When looking at the EUR/USD chart you can see if the currency pair, or in other words, the exchange rate between the Euro and the US Dollar, is rising or falling. A simple rule to understand the exchange rates would be to think of the base currency (EUR) as one unit of that currency being worth the value of the exchange rate expressed in the quote currency (USD). In this example, the graph illustrates the rising strength of the base currency, the Euro, relative to the quote currency, the US Dollar. - Read more

To decide on entrance and exit, traders can add patterns on. Among the most famous are the Elliott Waves patterns that reflect cycles of the predominant emotions of investors and traders in upward and downward swings.

"The patterns identified into the diagram by Elliott occur across multiple time frames. That means that a completed five wave sequence on a small time frame, let's say, a 15 minute chart, may represent just the first wave of a larger sequence unfolding on a 60-minute, and so forth. In a macro sense, each unfolding wave pattern is part of a bigger wave pattern unfolded in the higher graph. The sequence from wave 1 to 5 completes one wave of a higher degree, that is, a wave belonging to the next higher tier of wave sequences.." - Read more

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MOST INFLUENTIAL ECONOMIC DATA FOR EUR/USD

• Interest Rates, monthly established by the Federal Reserve in the USA and by the European Central Bank in Europe. Interest Rates typically reflect the health of economies. In a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation. Rate cuts on the other hand are a way to stimulate a struggling economy. (See our Worldwide Interest Rates table)
• Unemployment Rate: Usually, a higher rate of unemployment is seen in recessionary economies. A decrease of the figure in a country is seen as positive (or bullish) for its currency, while an increase is seen as negative (or bearish). In the USA, the number by itself can't determinate the markets move as it depends on the headline reading, the Nonfarm Payroll that is published the same day and presents the number of new jobs created during the previous month, in all non-agricultural businesses.
• GBP (Gross Domestic Product), the total market value of all final goods and services produced in the US or in Europe in a given year or month. The GDP of a country is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the concerned currency, while a low reading is negative.
• Trade Balance, a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the EUR/USD. If a steady demand in exchange for US exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the USD. The same applies to European exports for the EUR.
• Currencies: This group includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD and EUR/GBP.

Retail industry-related data are also economic data that can influence the EUR/USD: Retail Sales (consumer spending) and Inflation indicators (the CPI, Core Price Index and the PPI, Production Price Index) as well as the Consumer Sentiment Indicator by University of Michigan.