My favorite pair is XAUUSG which represents the changes of gold prices. Actually, it is a CFD on gold commodity. The main advantages of this pair are the following:
- it is quite easy to find information on fundamental factors impacting the prices,including research papers issued by financial companies,
- price patterns appearing on the chart are quite understandable since they appearance is quite close to one described in books dedicated to technical analysis. All elements of technical analysis, such as trendlines or triangles work almost great on gold charts, especially on lower timeframes,
- it is quite easy to find interesting trading opportunities since the underlying (Gold commodity futures) is traded almost the whole day.
Another important point is that you can easily find detailed historical data for many years (including even tick data)for XAUUSD to backtest strategies. The simplies way to backtest it is to use special software like Forex Tester, that would be suitable if you are not familiar with coding. The dynamic of gold prices is similar to one that was many years ago, so it is the case when past performance provides useful information.
By the way, in future, it would be possible to switch to trading gold futures (GC) if it would be necessary to increase trading volume or to be able to trade at regulated market.
