Swing Trading Success: Choosing the Right Pairs in 2025
Want to make money in the forex market but cannot afford to take too much risk or hold a position for a longer term?
Well there is a strategy that can help you withdraw your profit soon without taking much risk. Yes, traders can do so with swing trading. Swing trading is amongst the best trading styles where traders can take advantage of medium and long-term trends.
The only problem a trader faces is selecting the right currency pairs for swing trading. But do not worry; Market Investopedia is there to help you. In this blog, we have a short overview of swing trading, the best currency pairs for swing trading and factors to look for when selecting ideal pairs.
Introduction to Swing Trading
Swing trading is a short-term strategy for trading in the forex, comex, commodity, stock, indices, and other financial markets. It is popular among beginners and passive traders.
Under this, swing traders hold a trade for two days to a few weeks to make a decent profit from medium-term price fluctuations. Swing trading is neither a too-risky nor a too-conservative strategy. Traders who want to make a profit in a short period and have limited market knowledge can use this strategy.
6 Best Currency Pairs for Swing Trading in 2025
2025 has already started, and pro traders have already planned their trades for the year. If you also want to stand out and take advantage of the maximum opportunities, here are the top forex pairs to trade as a swing trader:
EUR/USD:
EUR and USD are the most traded currencies in the forex market. The trading conditions of the pair are quite stable, making it suitable for swing traders. The pair observe a significant rise or fall for the swing trading time frame. This can be good for traders because they can enjoy tight spreads, high liquidity, and less volatility. They can even take advantage of the changing dynamics of the two biggest economies.
GBP/USD:
Traders looking for a EUR/USD alternative can consider a GBP/USD pair. The market conditions of both pairs are quite similar. They share positive correlations with each other. The British pound already has a huge influence over the world, and its combination with the United States Dollars makes the pair much more attractive.
Traders can watch the interest rate decisions and overall economic conditions of both countries to identify potential trading opportunities. Also, the overlapping hours of London and American forex sessions can be great for trading this pair.
USD/JPY:
If you are looking for an alternative to European currencies to trade against US Dollars, you can consider Japanese Yen. Yen is undoubtedly a strong currency with a huge influence over the forex market. Japan remains in the news for its technological innovation and automation. Traders can even take advantage of Japan’s highly advanced economy and trade against major global currencies with different market conditions.
USD/CHF:
Many traders are afraid of the risk, and that’s the reason they choose swing trading. If you also don’t want to take excessive risks, you can consider the Swiss franc. It is also known as a safe haven currency, meaning its values increase or remain the same even in unfavourable circumstances. The currency will not fall or rise too much as a result; it is quite a stable and safe option for swing traders.
EUR/JPY:
You can even trade the Euro against the Japanese yen. The yen is already a strong currency with a high influence in the technological sector. Meanwhile, the euro leads the world with its strong political presence. So traders can observe a significant rise and fall against each other, and traders can take advantage of it.
EUR/GBP:
Well, if you are a lover of minor currency pairs and don’t want to trade USD, you can consider a combination of EUR/GBP. Both countries have strong currencies and a good presence in the market. They remain in the news for dynamic political conditions and have a huge hold on global trade. The pair saw a significant rise and fall even in medium-duration, so swing traders should consider it.
A quick glance
Swing trading is a strategy to hold a trade for two days to a few weeks to make a decent profit from medium-term price fluctuations.
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- EUR/GBP
- EUR/JPY
Consider your capital, risk, leverage, time frame, interest knowledge, and leverage to select an ideal pair for swing trading.
Swing traders can trade somewhere from one to five pairs.
Factors to consider for an ideal Swing Trading Pairs
We have discussed the best currency pairs for swing trading. However, you can even select any other pair apart from these options. You just need to consider the below factors for selecting your favourite pair:
Knowledge and Interest:
The knowledge of the currency pair you are trading is required to identify potential. So, while selecting a currency pair, make sure that you know the market conditions of currencies and the countries. Even a change in stock market dynamics or commodity market or political change in that particular country can impact your forex trading. Thus, knowledge will help you spot potential trading opportunities.
Risk and Suitability:
Generally, traders who want to take moderate risk go for swing trading. Thus, it is important to consider the risk element with the currency pair. A high-volatility pair may result in huge losses, while a pair with small swings will result in little or negligible profit. So, it is better not to go for a very stable or highly volatile pair.
Overnight Swap Fees:
In swing trading, a trader needs to keep a position open for more than a day. In some cases, traders may hold a trade for 15 days. So, overnight swap fees can make a significant amount and can directly affect your profit. Thus, before choosing a currency pair, consider the overnight swap charges for a pair. Swap charges are also different with different currency brokers, so even check what your broker charges.
Conclusion
Undoubtedly, Swing trading is one of the best strategies for new or passive traders. It will not take much of your time, and you will even get proper time to make buying and selling decisions.
However, most of your profit or loss depends on the currency pair you choose and the time you are trading. So select the swing trading pair considering your capital, risk, leverage, time frame, interest knowledge, leverage and other factors.