You are reading this article because you want to know EURUSD meaning. The EURUSD is the shortened term for the euro against the United States dollar. The meaning of buying EURUSD simultaneously is when you buy euro and sell it for the dollar.
According to recent estimates, the EUR USD currency pair accounts for about a third of all transactions in the global foreign exchange market.
Reading EURUSD live chart is an essential technical analysis skill. EURUSD chart live provides useful information such as market sentiment or possible trend changes using specific numbers. However, mastering this skill can seem daunting and confusing.
The MetaTrader platform offers three different options for monitoring exchange rate changes in real-time: line charts, bar charts, or candlestick charts. Forex trading software, such as MT4, allows you to switch between these types of charts by choosing View – Toolbars – Standard from the menu.
How do the line charts and candlestick charts compare?
A line chart is a very simple technique for displaying price movement. It displays information on one line using a series of dots. This is a graph EUR USD that you might see in different magazines and newspapers that shows the market sentiment and the trend of an asset.
To understand candlestick charts, you need to know what price movement is, not as a line, but as a series of candles.
Forex traders prefer Forex candlestick charts because they show much more information than a line chart and can therefore be much more helpful in making trading decisions.
Namely, if we display a EUR USD candlestick chart for 30 minutes, each candle will form within 30 minutes. Likewise, if the chart is drawn within 15 minutes, the candlestick will take 15 minutes to form.
Let’s consider a specific case. If we take two charts showing the price dynamics for the EUR USD trading pair with a range of 1 hour. The first one with 15-minute candles and the other with 5-minute candles.
On a 15 minute chart, the hourly timeframe creates 4 candles over this period.
On the 5 minute chart, we will see 12 candles for the same timeframe. So we can get more detailed information about what happened in that hour.
Thus, if two charts represent the price action of the same asset, the hourly timeframe will show price action over a much longer period than the EUR USD minute chart. But on the last one, there will be more details.
Forex traders can get ideas and make their forecasts with EURUSD news today. The European Central Bank (ECB) has a significant impact on the EUR USD FX rate. To correctly determine the direction of movement of EUR USD, it is important to monitor euro Forex news regarding the bank’s monetary policy and its interest rates.
Other important economic indicators that can help predict the fluctuation of the euro include:
ZEW Economic Sentiment Index
Consumer Price Index
10-Year Bond Auction
The release of US economic statistics like the employment data, jobless claims, CPI retail sales growth, PMI, interest rate decision also affects fx rate EUR to USD.