The EUR/USD chart allows traders monitor euro exchange rate fluctuation against the US dollar. It shows the dynamics of the quote which depends on the economic situation in the US and European Union as on the financial reports of major companies and the situation in the commodity and goods markets. The results of trades of the pair cross rates over a certain period of time can help determine the further dynamics of this currency pair and gain profit on it. The euro is the second most traded world currency, emitted by the European Central Bank. The US dollar on the other hand, is the most widely traded currency in the world. The issuer is the Federal Reserve System (the Fed).Historically, the Euro/Dollar reached an all-time high of 1.87 and a record low of 0.70. The Euro was recognized as a means of exchange on the first of January 1999, however, synthetic historical prices going back much further can be modeled if we consider a weighted average of the previous currencies. The EUR/USD are the most popular currency pair in the world, it represents the world’s largest economies. The pair has faced considerable volatility as the world has faced multiple events of volatility such as tech boom becoming the tech bust.
This is a method of studying and evaluating market dynamics, which is based on the price history. The main purpose of technical analysis is to predict price dynamics of a financial instrument in future through technical analysis tool. Analyst use this method of market analysis to predict the prices of different currencies and currency pairs, which allows traders make right investment decisions and trade more profitable in financial markets.
EURO/ DOLLAR EXCHANGE RATE
The EURUSD spot exchange rate states the amount one currency, the EUR, is currently worth in terms of the other, the USD. While the EUR/USD spot exchange rate is quoted and exchanged on the same day, the EUR/USD forward rate is quoted that same day but the delivery and payment on a specific future date.
A currency pair depicts a quotation of two different currencies. The foremost currency in the pair is called the Base currency or transaction currency. The second currency in the pair is called the quote currency, payment currency or counter currency. Such quotation depicts the amount of units of the counter currency needed to purchase one unit of the base currency. For instance, the quotation EUR/USD 1.2500 signifies that one euro is exchanged for 1.25 US dollar. If the quote shifts from 1.2500 to 1.2520, the euro is getting stronger and the dollar weaker. On the other hand, if the quote moves from 1.2500 to 1.2490, the euro is getting weaker while the dollar is getting stronger.
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