The EUR/USD Cable Continued Yesterday's Steep Slope

The EUR/USD cable continued yesterday's sharp incline on the daily charts but it retreated to 1.4420, after touching a high of 1.4483.

Euro zone's CPI released today came in line with expectations so it did not have much impact on the market.

The pair recorded a low of 1.4398, whereas the coming support is at 1.4380 and resistance at 1.4483.

The sterling-dollar pair declined on the daily and 4-hour charts.

PMI construction inclined but came lower than forecasts; however, it did not affect the pound's movements today.

The pair is currently traded at 1.6012 after setting a high of 1.6152 and a low of 1.5986; while the coming support for the pair is seen at 1.5980 and the resistance is spotted at 1.6050.

USD Index Continued To Pull Back

The Dollar Index continued to pull back as the FED reminds markets that lower interest rates will still be here for some time.

Whilst yesterdays strong manufacturing report was bullish, this was offset by strong economic data from the UK and China.

Investors appear to be flocking in to higher yielding currencies.

How To Choose The Best Pair In FX Currency Trade

Does anyone of you have an idea on which currency pairs are the best to trade in Foreign exchange?

Is it the major currency pairs, the cross pairs or the exotic pairs? Well there isn't really a right and wrong answer; it depends on how you define 'best'.

If a currency pair has tight spreads, it may be considered the best trading currency pair for you, but may not apply for others. So now we'll discuss on various factors on choosing a forex pair:

1. Spreads - There is always an advantage to trade currency pairs that have a tight spread in foreign exchange trading.

It means that lesser spreads equal to more profit, lesser spreads give you more room for price fluctuation if you have a tight stop loss and lesser spreads may help you to breakeven your FX trade earlier.

2. Trendiness - For chartist traders like me, I depend mostly on technical indicators to help me decide which forex currency pair to trade.

3. Trading Sessions - The best time to trade forex is when the market is the most active and therefore has the biggest volume of trades. During Asian hours when Tokyo opens, the better trading time is from 7PM EST to 10PM EST.

But since not all the currency pairs are actively moving, you may want to trade AUD/USD as it starts to move during the stated timing.