The best time to trade EUR/USD
According to some experts, the acceptable EUR/USD trading hours for intraday traders of the EUR/USD currency pair fall between 07:00 and 20:00 GMT. But the typical time to trade EUR/USD should be between 13.00 and 16.00 GMT.
Trading currency pairs during times of high volatility and liquidity are among the top tips novice traders get from professional Forex traders. But should a trader just enter the market and start trading these pairs? The answer is “no”, as there are best Forex pairs to trade and times when trading these pairs is more profitable. So when is the best time to trade EUR/USD?
Trading during Forex trading session overlap is a top option. The best currency to trade during the overlap between New York and London and the European trading session is EUR/USD. While this currency pair is among the most popular Forex pairs, the best time to trade EUR/USD depends on some factors. This includes economic events, market volatility, and liquidity. This article will cover everything you need to know about the EUR/USD currency pairs, including the ideal time to trade them.
Yes. The EUR/USD is a good pair to trade, and it is even the best currency pair for beginners and professional traders. Aside from being the most traded currency, EUR/USD currency pairs are a combination of the most popular currencies.
The EUR and USD also make up the largest percentage of trades on the global financial market because they are the biggest and most popular currencies globally. It offers the most opportunities for traders to make profitable trades and is the most liquid currency pair.
Forex market hours are when traders can trade major currency pairs, including the EUR/USD, or buy, sell, or exchange them. The foreign exchange market is open daily, all through the various time zones. So traders can trade the EUR/USD 24 hours a day, 5 days a week. Trading days are Monday through Friday, as the Forex market closes on weekends.
EUR trades provide significant profit opportunities, but volume and volatility vary widely over 24 hours. So while EUR/USD is the best pair to trade during the European trading session and European/London over, there are speculated periods known to be the best time to trade EUR/USD. These are periods when traders with top trading strategies profit greatly from trading the EUR/USD currency pairs. Jump to the next section to learn the best time to trade EUR/USD.
According to Traders Union experts, the acceptable EUR/USD trading hours for intraday traders of the EUR/USD currency pair fall between 07:00 and 20:00 GMT. But the typical time to trade this currency pair should be between 13.00 and 16.00 GMT. Trading during this period increases efficiency since it is when the most significant movements of the day are recorded, which could result in greater profit potential.
Furthermore, the best time to trade EUR/USD is during the overlap of the New York and London sessions, between 12:00 PM and 4:00 PM GMT.
Here are some factors to consider when seeking the best time to trade the euro. And novice traders must learn about these factors since they influence the volatility of the EUR/USD.
The different times when Forex trading sessions overlap
The time of economic data release
Equity, options, and futures exchanges open hours
For traders trading in the European market, updates from the European Central Bank (ECB) and the Federal Reserve Bank of the United States (Fed) also affect the volatility of the euro.
Note:
You might come across different suggestions when inquiring about the best time to trade EUR/USD from different Forex trading experts or online sources. This might be due to how these Forex experts interpret the market and employ their trading strategies. So since trading is never a straightforward activity, prepare to practice trading pairs at these varying times alongside your trading strategy.
The Forex market is a global activity, meaning traders from different regions can participate in the currency market. However, this could occur at various times, depending on the trader's location and time zone. Converting the central time to your local time will help you overcome the difficulty of determining the best time to trade EUR/USD based on your location.
Any trader looking to trade the EUR/USD pair wants to find a window with a high volatility level. And the European session is among the periods when traders trade the Euro and GBP currency pairs more actively. Similarly, the USD/CAD currency pairs are more active when the US and Canadian sessions are open.
An overlap of the European or American markets favors traders trading the EUR/USD within the European and American countries. So traders in different regions should convert this time into their local time to trade the EUR/USD when others are trading too.
| Session | Major markets | Trading hours |
|---|---|---|
North American Session (US session) |
EUR/USD, GBP/USD, USD/JPY, USD/CHF |
Assets for copy trading 22.00 to 7.00 GMT |
European Session (London session, GMT) |
EUR/USD, EUR/JPY, EUR/GBP, GBP/USD |
Assets for copy trading 8.00 to 17.00 GMT |
Asian Session (GMT) |
USD/JPY, NZD/JPY, EUR/JPY, AUD/JPY |
Assets for copy trading 23.00 to 9.00 GMT |
As stated earlier, it is up to the trader to decide which strategies they think are best for trading the EUR/USD pair. They must open their position during the best EUR/USD trading times, which is crucial. And they must carry out the necessary technical and fundamental analysis before trading the euro.
Importantly, traders who know the best time to trade EUR/USD should learn about the top trading patterns before trading currency pairs. Below are the top trading styles:
The scalping trading style requires a trader to focus on profiting off small price changes and making a fast profit by reselling. This strategy requires a strict exit strategy from the trader. This is so that any significant loss could wipe out the account's numerous minor gains. However, this trading approach creates the possibility for potential day-long short-term profits.
The day trading approach mandates that traders buy at the day's low and sell at the day's high. With this strategy, there are no overnight trades; open positions must be closed before the trading session ends for the day.
By holding a position for several days or weeks, swing trading is a long-term trading strategy that enables investors to profit from short - to medium-term price trends. This type of trading necessitates the trader to use top technical and fundamental analysis tools, with daily market report analysis taking several hours. Read also the article: Best Forex Brokers To Trade EURUSD With Tight Spreads.
Note:
Another style of trading that is not popular due to its long-term approach is position trading. This trading approach requires traders to be ready to hold positions for several weeks, months, or even years.
The best currency pairs for new traders include EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, and USD/CAD. These currency pairs provide the most opportunities for new traders to make profitable trades, but only if they know how to set up their positions using fundamental and technical analysis.
👍 Pros of trading the EUR/USD currency pair
The best time to trade EUR/USD for intraday traders is accepted as being between 07:00 and 20:00 GMT. But the ideal time is between 13.00 and 16.00 GMT. And traders choose to trade EUR/USD because of the opportunities it presents to traders of all experience levels.
EUR/USD liquidity and volatility volume, which are on a high horizon, are the key drivers why it is many traders' choice. Additionally, the opportunities it provides can be valuable to new traders. And the reason for this is that unanticipated market fluctuations have little effect on them.
The best times to scalp EUR/USD are during the London and New York trading sessions, which run from 08:00 GMT to 17:00 GMT and 13:00 GMT to 22:00 GMT, respectively. This is because the conditions are suitable for the scalping trading strategy to succee -high liquidity and volatility - at this particular moment.
Since there is more volatility on those days, Tuesday, Wednesday, and Thursday are the best for trading forex. The busiest trading day on the currency market is Wednesday, which falls in the middle of the week. Both Monday and Friday trading may be erratic. Monday trading may be slow.
The best time to trade the EUR/USD is between 8:00 a.m. and 12:00 p.m. GMT.
The Forex trading session overlap is the ideal time for currency trading. However, the best time for currency trading is between 8 a.m. and noon Eastern Standard Time (EST), when the London and US markets overlap.
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
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