A list of trending and non-trending pairs
Posted: Sun Sep 15, 2024 3:26 pm
I think you'd find this information useful if you are using a trend-following strategy.
I asked chatgpt "What are the most trending forex minor and major pairs" and it came up with this list:
GBP/JPY (British Pound / Japanese Yen)
EUR/JPY (Euro / Japanese Yen)
GBP/USD (British Pound / US Dollar)
AUD/JPY (Australian Dollar / Japanese Yen)
NZD/JPY (New Zealand Dollar / Japanese Yen)
EUR/USD (Euro / US Dollar)
USD/CAD (US Dollar / Canadian Dollar)
EUR/GBP (Euro / British Pound)
GBP/CHF (British Pound / Swiss Franc)
AUD/USD (Australian Dollar / US Dollar)
USD/JPY (US Dollar / Japanese Yen)
EUR/AUD (Euro / Australian Dollar)
USD/CHF (US Dollar / Swiss Franc)
EUR/CAD (Euro / Canadian Dollar)
NZD/USD (New Zealand Dollar / US Dollar)
CAD/JPY (Canadian Dollar / Japanese Yen)
AUD/CHF (Australian Dollar / Swiss Franc)
GBP/AUD (British Pound / Australian Dollar)
AUD/NZD (Australian Dollar / New Zealand Dollar)
EUR/NZD (Euro / New Zealand Dollar)
NZD/CAD (New Zealand Dollar / Canadian Dollar)
CHF/JPY (Swiss Franc / Japanese Yen)
EUR/CHF (Euro / Swiss Franc)
GBP/CAD (British Pound / Canadian Dollar)
CAD/CHF (Canadian Dollar / Swiss Franc)
NZD/CHF (New Zealand Dollar / Swiss Franc)
AUD/CAD (Australian Dollar / Canadian Dollar)
Ignoring this would be a huge mistake in trading. It will make the difference between a profitable and non-profitable trader.
Trending pairs are good for trend following strategies and others are good for mean reversion. This is what I think tho.
Most Trending to Least Trending - Major and Minor Pairs
1. GBP/JPY (British Pound / Japanese Yen)
o Highly volatile with strong trends due to the sensitivity of both currencies to global risk and economic differences.
2. EUR/JPY (Euro / Japanese Yen)
o Trends strongly during shifts in monetary policy and economic differences between the Eurozone and Japan.
3. GBP/USD (British Pound / US Dollar)
o Known for its volatility and strong directional movements, especially during UK and US market hours.
4. AUD/JPY (Australian Dollar / Japanese Yen)
o Heavily influenced by risk sentiment and commodity prices, which leads to clear trends.
5. NZD/JPY (New Zealand Dollar / Japanese Yen)
o Strong trends tied to the carry trade and commodity cycles, frequently moving with global risk sentiment.
6. EUR/USD (Euro / US Dollar)
o The most liquid pair in forex, known for trending during key economic reports but often ranges during low volatility periods.
7. USD/CAD (US Dollar / Canadian Dollar)
o Strongly affected by oil prices and Canadian economic conditions, creating trends during commodity cycles.
8. EUR/GBP (Euro / British Pound)
o Trends well during periods of political and economic divergence between the UK and Eurozone.
9. GBP/CHF (British Pound / Swiss Franc)
o Known to trend during risk-on and risk-off market movements, with moderate volatility.
10. AUD/USD (Australian Dollar / US Dollar)
o Moves strongly with commodity prices, making it an excellent pair to trend-follow, especially during shifts in global risk sentiment.
11. USD/JPY (US Dollar / Japanese Yen)
o Trends based on interest rate differentials and risk sentiment but can also range during central bank interventions.
12. EUR/AUD (Euro / Australian Dollar)
o Known to trend well during divergent economic conditions or global risk sentiment.
13. USD/CHF (US Dollar / Swiss Franc)
o Trends during periods of risk aversion or when the Swiss Franc strengthens as a safe-haven asset.
14. EUR/CAD (Euro / Canadian Dollar)
o Impacted by oil price fluctuations, this pair can trend well during commodity booms or busts.
15. NZD/USD (New Zealand Dollar / US Dollar)
o Less volatile than some pairs, but still trends well during risk-on or risk-off scenarios and commodity price changes.
16. CAD/JPY (Canadian Dollar / Japanese Yen)
o Can develop strong trends due to the carry trade and commodity cycles, especially when oil prices fluctuate.
17. AUD/CHF (Australian Dollar / Swiss Franc)
o Moves well during shifts in global risk sentiment, though it's generally less volatile than major pairs.
18. GBP/AUD (British Pound / Australian Dollar)
o This pair trends strongly during economic divergence between the UK and Australia, though volatility can be unpredictable.
19. AUD/NZD (Australian Dollar / New Zealand Dollar)
o Typically ranges more than trends due to the correlation between the Australian and New Zealand economies.
20. EUR/NZD (Euro / New Zealand Dollar)
o Can trend well during divergence in the Eurozone and New Zealand economies but generally less volatile than the top pairs.
21. NZD/CAD (New Zealand Dollar / Canadian Dollar)
o Less liquid but can trend during oil price shifts and divergence in the Canadian and New Zealand economies.
22. CHF/JPY (Swiss Franc / Japanese Yen)
o A low-volatility pair that can trend during risk-off periods due to the safe-haven nature of both currencies.
23. EUR/CHF (Euro / Swiss Franc)
o Often less volatile but can trend during times of economic divergence between the Eurozone and Switzerland.
Key Insights for Trend Following:
• JPY pairs (e.g., GBP/JPY, EUR/JPY, AUD/JPY) tend to be the most trending, as they are heavily influenced by global risk sentiment.
• GBP pairs (like GBP/USD, GBP/JPY, and GBP/AUD) are volatile and often display strong trends, especially during economic news events.
• Commodity pairs (such as AUD/USD, USD/CAD, NZD/USD) trend well during commodity price fluctuations, particularly with commodities like oil and gold.
• Minor pairs like EUR/NZD, GBP/AUD, and AUD/CHF tend to trend more during risk-on and risk-off periods but can have lower liquidity.
I asked chatgpt "What are the most trending forex minor and major pairs" and it came up with this list:
GBP/JPY (British Pound / Japanese Yen)
EUR/JPY (Euro / Japanese Yen)
GBP/USD (British Pound / US Dollar)
AUD/JPY (Australian Dollar / Japanese Yen)
NZD/JPY (New Zealand Dollar / Japanese Yen)
EUR/USD (Euro / US Dollar)
USD/CAD (US Dollar / Canadian Dollar)
EUR/GBP (Euro / British Pound)
GBP/CHF (British Pound / Swiss Franc)
AUD/USD (Australian Dollar / US Dollar)
USD/JPY (US Dollar / Japanese Yen)
EUR/AUD (Euro / Australian Dollar)
USD/CHF (US Dollar / Swiss Franc)
EUR/CAD (Euro / Canadian Dollar)
NZD/USD (New Zealand Dollar / US Dollar)
CAD/JPY (Canadian Dollar / Japanese Yen)
AUD/CHF (Australian Dollar / Swiss Franc)
GBP/AUD (British Pound / Australian Dollar)
AUD/NZD (Australian Dollar / New Zealand Dollar)
EUR/NZD (Euro / New Zealand Dollar)
NZD/CAD (New Zealand Dollar / Canadian Dollar)
CHF/JPY (Swiss Franc / Japanese Yen)
EUR/CHF (Euro / Swiss Franc)
GBP/CAD (British Pound / Canadian Dollar)
CAD/CHF (Canadian Dollar / Swiss Franc)
NZD/CHF (New Zealand Dollar / Swiss Franc)
AUD/CAD (Australian Dollar / Canadian Dollar)
Ignoring this would be a huge mistake in trading. It will make the difference between a profitable and non-profitable trader.
Trending pairs are good for trend following strategies and others are good for mean reversion. This is what I think tho.
Most Trending to Least Trending - Major and Minor Pairs
1. GBP/JPY (British Pound / Japanese Yen)
o Highly volatile with strong trends due to the sensitivity of both currencies to global risk and economic differences.
2. EUR/JPY (Euro / Japanese Yen)
o Trends strongly during shifts in monetary policy and economic differences between the Eurozone and Japan.
3. GBP/USD (British Pound / US Dollar)
o Known for its volatility and strong directional movements, especially during UK and US market hours.
4. AUD/JPY (Australian Dollar / Japanese Yen)
o Heavily influenced by risk sentiment and commodity prices, which leads to clear trends.
5. NZD/JPY (New Zealand Dollar / Japanese Yen)
o Strong trends tied to the carry trade and commodity cycles, frequently moving with global risk sentiment.
6. EUR/USD (Euro / US Dollar)
o The most liquid pair in forex, known for trending during key economic reports but often ranges during low volatility periods.
7. USD/CAD (US Dollar / Canadian Dollar)
o Strongly affected by oil prices and Canadian economic conditions, creating trends during commodity cycles.
8. EUR/GBP (Euro / British Pound)
o Trends well during periods of political and economic divergence between the UK and Eurozone.
9. GBP/CHF (British Pound / Swiss Franc)
o Known to trend during risk-on and risk-off market movements, with moderate volatility.
10. AUD/USD (Australian Dollar / US Dollar)
o Moves strongly with commodity prices, making it an excellent pair to trend-follow, especially during shifts in global risk sentiment.
11. USD/JPY (US Dollar / Japanese Yen)
o Trends based on interest rate differentials and risk sentiment but can also range during central bank interventions.
12. EUR/AUD (Euro / Australian Dollar)
o Known to trend well during divergent economic conditions or global risk sentiment.
13. USD/CHF (US Dollar / Swiss Franc)
o Trends during periods of risk aversion or when the Swiss Franc strengthens as a safe-haven asset.
14. EUR/CAD (Euro / Canadian Dollar)
o Impacted by oil price fluctuations, this pair can trend well during commodity booms or busts.
15. NZD/USD (New Zealand Dollar / US Dollar)
o Less volatile than some pairs, but still trends well during risk-on or risk-off scenarios and commodity price changes.
16. CAD/JPY (Canadian Dollar / Japanese Yen)
o Can develop strong trends due to the carry trade and commodity cycles, especially when oil prices fluctuate.
17. AUD/CHF (Australian Dollar / Swiss Franc)
o Moves well during shifts in global risk sentiment, though it's generally less volatile than major pairs.
18. GBP/AUD (British Pound / Australian Dollar)
o This pair trends strongly during economic divergence between the UK and Australia, though volatility can be unpredictable.
19. AUD/NZD (Australian Dollar / New Zealand Dollar)
o Typically ranges more than trends due to the correlation between the Australian and New Zealand economies.
20. EUR/NZD (Euro / New Zealand Dollar)
o Can trend well during divergence in the Eurozone and New Zealand economies but generally less volatile than the top pairs.
21. NZD/CAD (New Zealand Dollar / Canadian Dollar)
o Less liquid but can trend during oil price shifts and divergence in the Canadian and New Zealand economies.
22. CHF/JPY (Swiss Franc / Japanese Yen)
o A low-volatility pair that can trend during risk-off periods due to the safe-haven nature of both currencies.
23. EUR/CHF (Euro / Swiss Franc)
o Often less volatile but can trend during times of economic divergence between the Eurozone and Switzerland.
Key Insights for Trend Following:
• JPY pairs (e.g., GBP/JPY, EUR/JPY, AUD/JPY) tend to be the most trending, as they are heavily influenced by global risk sentiment.
• GBP pairs (like GBP/USD, GBP/JPY, and GBP/AUD) are volatile and often display strong trends, especially during economic news events.
• Commodity pairs (such as AUD/USD, USD/CAD, NZD/USD) trend well during commodity price fluctuations, particularly with commodities like oil and gold.
• Minor pairs like EUR/NZD, GBP/AUD, and AUD/CHF tend to trend more during risk-on and risk-off periods but can have lower liquidity.