What is the best time to trade EUR/USD during the day?
The allure of forex day trading is that you can trade 24 hours a day. Unfortunately, that doesn't mean you should. Day traders should only trade when forex pairs are active and there is a lot of volume and trading taking place. EUR/USD is available for day trading at certain times because there is enough volatility to generate profits.
In order to increase efficiency and capture the greatest fluctuations of the day, day traders tend to trade only during specific three- to four-hour windows
The impact of euro-dollar fluctuations
foreign exchange marketIt operates 24 hours a day during the week because there is always a global market open somewhere due to time zone differences. However, different currency pairs fluctuate differently at different times of the day.
When the European market is open for business, currency pairs involving the Euro (EUR) or the British Pound (GBP) are more actively traded. When the US and Canada are open for business, currency pairs involving the US Dollar (USD) and the Canadian Dollar (CAD) are more active.
If day tradingEUR/USDOn average, the pair is likely to be most active when the London and New York exchanges are open. These markets are open between 8:00 and 22:00 Greenwich Mean Time (GMT).
Acceptable hours for day trading EUR/USD
The hourly volatility chart shows the number of pips that the EUR/USD moved per hour over the course of the day (the time is based on GMT). Starting at 0700, the amount of volatility increases significantly and continues until 2000. After this, the hourly volatility starts to subside, and as a result, the large price swings that day traders can participate in may decrease.
Day traders are best placed to trade between 7:00 and 20:00 GMT. Volatility varies over time, but the most volatile periods generally do not change much. 7:00 to 20:00 GMT will continue to be the most acceptable hours for day trading, regardless of whether the daily volatility increases or decreases. Please note that daylight saving time may affect trading hours in your area.
It is best to trade EUR/USD day between 13:00 and 16:00 Greenwich Mean Time to maximize efficiency. During this time, you will see the largest volatility of the day, which means greater profit potential and minimal impact of spreads and commissions relative to potential profits. London and New York are both open during this three-hour window. This means a lot of volume from both major markets, so spreads are usually tightest during this time.The ideal time for day trading EUR/USD
Please indicate the source: https://www.daoctech.com/fxschool/1075.html
Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.