Good morning. The EUR/USD isn’t just the most traded forex pair—it alone accounts for nearly 1/4 of all daily FX volume worldwide.

When traders say “the market,” chances are they’re watching this chart.

-Shaun A, Jonathan Kibbler, Jordon Mellor

MARKETS

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

FOREX

There are hundreds of currency pairs available to trade, but the vast majority of global FX activity is concentrated in just a handful. According to the Bank for International Settlements (BIS) 2022 survey, more than 80% of daily FX turnover runs through seven majors: EUR/USD (23%), USD/JPY (13%), GBP/USD (10%), AUD/USD (6%), USD/CAD (5%), USD/CHF (3%), and NZD/USD (2%).

These pairs dominate for a reason. They are where liquidity, tighter spreads, and consistent volatility come together and where most professional trading activity occurs.

High turnover means deep order books. That translates into tighter spreads and lower transaction costs.

On EUR/USD, spreads often sit below 0.5 pips. On exotics like USD/TRY, spreads can stretch into dozens of pips. The difference directly impacts profitability, especially for active traders.

Majors attract a wide pool of participants, from central banks to hedge funds, which makes their price action more orderly. Support and resistance levels hold with greater reliability, and breakouts are less prone to whipsaw compared to thinly traded pairs. For strategy testing and execution, this structure is critical.

The majors move on familiar catalysts: central bank decisions, inflation data, employment figures. Their volatility is significant but explainable. By contrast, exotic pairs can spike on localized flows or sudden policy shifts, creating unpredictable risk. Majors provide volatility that traders can anticipate and trade around, rather than random price shocks.

With majors, relationships between pairs add another layer of analysis. EUR/USD and GBP/USD often move together, while USD/JPY tracks U.S. yields. These correlations can help confirm setups or highlight when one market is lagging behind another. Exotics lack this interconnected web, leaving traders with less context.

Most indicators, moving averages, RSI, Bollinger Bands, were developed using liquid, widely traded markets. They tend to function more effectively on majors, where price data is smooth and consistent, compared to exotics where illiquidity distorts signals.

The FX market may look limitless, but in practice, it’s concentrated. More than 80% of turnover flows through seven major pairs, and that concentration explains why they remain the backbone of professional trading.

For us traders, focusing on the majors means lower costs, more reliable setups, and cleaner tools. The truth behind the Big Seven is simple: this is where the market’s real edge lives.

TRADER INSIGHTS

I don't think it's any secret that the Australian dollar is on a tear right now, some recent macro data upside surprises and extreme hedge fund positioning have added to its strength. The Canadian dollar on the other hand is suffering, lower inflation and falling oil prices will see the Bank of Canada cut rates again this week. 

This is why the AUD/CAD chart is very appealing, especially as now the price has broken out of a long term consolidation pattern. 

The Aussie dollar has been the strongest performer in the G10 and was up 1.45% against the USD last week. It has also stormed through other stronger currencies like the GBP, CHF and EUR. 

This move has been supported by the recent labour market data which has been holding up. Unemployment fell to 4.2% in July and expectations for August seem steady. The RBA is still cautious, but the jobs data gives them cover to cut rates slowly rather than aggressively as first thought. 

The Canadian dollar on the other hand is under pressure. 

Weaker data prints including softer builder permits and lower inflation is a sign of slowing consumer demand. 

Oil prices have also been coming down and steadying, with Canada being a large exporter of oil, profits could be much lower. 

This week the Bank of Canada is forecast to cut interest rates for the first time since March of this year, lower interest rates often lead to currency depreciation. 

The price of AUD/CAD has broken out of a consolidation that formed back in May. This gives us a strong insight into the market's thoughts here, and upside potential is likely under the current circumstances. If the price is going to form a trend then a bullish opportunity might form on pullbacks into key support areas. The 0.9000 level could be that place. Targets for longs could reach as high as 0.9350 which is the 2024 high.

-Jonathan Kibbler

WATCH

GAMES

SHARE

{{rp_personalized_text}}

Copy & paste this link: {{rp_refer_url}}

GET TO IT

.🦖 Do a super quick challenge that will have missive impacts on your results.

🦖 Watch Professional Traders trade live in London

🦖 Get funded as a trader with up to $4,000,000.

🦖 Check out these recommended trading tools.

🦖 Understand how Market Makers work

ANSWER

Answer: EURUSD $EURUSD ( ▲ 0.59% )