Best Forex Trades To Make Today

Forex, or foreign exchange trading, is the buying and selling of currencies in pairs. The most commonly traded pairs are known as the majors and include the Euro to US Dollar, US Dollar to Japanese Yen, British Pound to US Dollar, Australian Dollar to US Dollar, US Dollar to Swiss Franc, and US Dollar to Canadian Dollar.

The best currency pair for you to trade is the one that you are most knowledgeable about. It is recommended that you try trading most of the pairs before choosing a particular one to stick with.

If you are a beginner, it is recommended that you look for platforms that offer demo accounts so you can practice trading without risking your funds.

EUR/USD

When deciding whether to buy or sell EUR/USD, it is essential to consider various factors, including the current geopolitical situation, interest rates, and technical analysis. The technical rating for the pair is a strong buy today, but it is important to monitor the market closely as conditions can change rapidly.

GBP/USD

The British pound is influenced by numerous factors, both domestic and international. Domestically, the pound is affected by economic indicators such as interest rates, GDP growth, inflation and labour market data. The Bank of England's decisions on interest rates and quantitative easing can also impact the GBP. Additionally, the pound can be influenced by the prices of commodities such as base metals, oil and other commodities.

On the other hand, the USD is influenced by labour market data, including non-farm payroll (NFP) results and unemployment rates. Other factors that can impact the USD include US GDP, inflation data, interest rates and the Federal Reserve Bank's (Fed) policies.

When considering investing in the GBP/USD pair, it is important to monitor the economic indicators and news from both the UK and the US, as well as global events that may impact these currencies.

As of July 2024, the GBP/USD pair has been experiencing some fluctuations. It climbed to multi-week highs near 1.2850, with the US Dollar struggling to find demand as market focus shifted to Fed Chairman Powell's congressional testimony. The pair preserved its bullish momentum and closed the week above 1.2800.

Looking ahead, it is important to consider the potential impact of upcoming events, such as the US CPI inflation data, on the GBP/USD pair. The Pound Sterling looks to the US CPI and targets the 1.2900 level again.

It is always recommended to conduct your own research and consult with a financial advisor before making any investment decisions.

USD/JPY

The Japanese yen is the third most traded currency in the forex market, and the USD/JPY pair is the second most traded pair, making it a benchmark for Asian economic health and the global economy.

At the time of writing, the USD/JPY rate is around 159.30. The pair is experiencing a weakening bullish bias as it breached the lower boundary of an ascending channel pattern. The 14-day Relative Strength Index (RSI) is slightly below the 50 level, indicating a decline in the momentum of the pair's price.

On the downside, initial support for USD/JPY may be found near the psychological level of 109.00. A break below this level could reinforce bearish sentiment and potentially push the pair towards June's low of around 104.55.

On the upside, immediate resistance is seen around the 21-day Exponential Moving Average (EMA) at 109.82, followed by the lower boundary of the ascending channel near 109.95. A return within the ascending channel could improve sentiment for the USD/JPY pair, potentially targeting the upper boundary of the channel around the 113.20 level.

AUD/USD

The AUD/USD currency pair is one of the most frequently traded currency pairs in the world. It is also known as the "Aussie". The Australian economy is driven largely by exports of iron ore, gas, coal and gold, making the AUD a "commodity currency".

The AUD/USD rate tells traders how many US Dollars are needed to buy a single Australian Dollar. At the time of writing, the rate is 0.67472 USD, meaning it takes 1.5 USD to buy 1 AUD. The AUD/USD has increased by 0.33% in the past 24 hours, 1.52% over the past week, 1.50% over the past month, and 1.85% over the past year.

The AUD/USD pair is currently in a bullish trend. If this continues, the pair could challenge the December 2023 top of 0.6871, before the July 2023 peak of 0.6894, all ahead of the critical 0.7000 barrier.

However, there are potential headwinds to the Australian Dollar. Concerns about sluggish momentum in the Chinese economy may hinder a sustained recovery of the Australian currency as China continues to face post-pandemic challenges. Additionally, the recent rebound in the US Dollar, following the US Nonfarm Payrolls data, could curtail the AUD/USD's upward trajectory.

USD/CHF

The USD/CHF currency pair is currently at a rate of 0.89767 CHF, which means it takes 0.89767 CHF to buy 1 USD. Over the past week, the USD/CHF showed a 0.53% fall, and in the past month, it has risen by 0.94%. The volatility rating of this pair is 0.29%.

When deciding whether to buy or sell this currency pair, it is important to consider various factors, including the current geopolitical situation and interest rates. One source suggests that USD/CHF is a good investment option right now, with a bullish bias. However, another source suggests that USD/CHF is in a downtrend in the 4-hour timeframe.

It is always a good idea to carefully consider your investment objectives, level of experience, and risk appetite before deciding to trade foreign exchange. Trading carries a high level of risk and may not be suitable for all investors.

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