EUR USD Volatility by Hour, Day, Month - Take-profit.org (2024)

FAQs

What is the average daily volatility of EUR USD? ›

On average, the EUR/USD pair has a daily pip movement of approximately 70-100 pips. This pair typically exhibits an average monthly pip movement of around 600-900 pips.

The popular time to trade EUR/USD is when European and US trading sessions overlap. It often trades with the highest liquidity and volatility between 1pm and 4pm GMT.

The term volatility describes the risk related to the changes in an asset's value. EURUSD has the volatility rating of 0.03%. Track all currencies' changes with our live Forex Heatmap and prepare for markets volatility.

EUR/USD Daily Outlook

While retreat from 1.1200 might extend lower, rally from 1.0665 is in favor to continue as long as 1.0947 resistance turned support holds. Above 1.1104 minor resistance will bring retest of 1.1200 first. Break there will target 1.1274 high next.

There's no denying: EUR/USD is the big hitter in the forex market. The pair consistently ranks as the world's most traded pair, often accounting for a quarter of global FX volume (more than $5 trillion in daily average turnover).

All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. During the middle of the week, the currency market sees the most trading action. As for the rest of the week, Mondays are static, and Fridays can be unpredictable.

Most institutions traders in America and Europe go on vacations in august, making it the worst month to trade. Traders will notice bigger and unpredictable price swings, and big market movers try to protect their portfolio, leading to: Long-term traders halting their operations during summer.

Impact on Trading Strategies

A trader will also need to determine what time frames are most active for their preferred trading pair. For example, for the EUR/USD pair, the European/U.S. session crossover will provide the most movement.

Implied volatility for EURUSD refers to the market's expectation of how much the exchange rate between the Euro and the US Dollar will fluctuate in the future.

Which currency has the highest volatility? ›

EURUSD Rate Forecast for 2024 – Experts Predictions

No sharp volatility spikes are expected. The trading environment is expected to remain stable, with the asset's value reaching the higher boundary of the 1.0940–1.1010 range between August and October, followed by a decline to 1.0890–1.0880 in November and December.

EUR/USD Technical Forecast

The EUR/USD is trading at $1.10775, up 0.11%, but facing resistance near $1.10910, a crucial pivot point. If the pair breaks above this level, we could see more bullish momentum toward the next resistance at $1.11201 and beyond.

Ideal Times to Day Trade EUR/USD

An ideal time to trade this currency pair is between 13.00 and 16.00 GMT to increase a level of efficiency. During this period, you will see the most significant movements of the day. This enables greater profit potential. London and New York are both open during this window.

Daily Volatility is the average difference between the return on a given day and the average return over the time period. To calculate the Daily Volatility you first compute the daily returns over the period in question.

Dollar cost averaging in volatile markets

This approach mitigates the risk of investing a large sum at an inopportune moment and helps to manage the emotional stress of market fluctuations. For instance, during periods of market downturns, many investors might hesitate to invest, fearing further declines.

Forex volatility is a measure of how much a currency pair's exchange rate fluctuates over time. It can be caused by various factors, both economic and geopolitical, and is essential for traders and investors to understand as it directly affects trading decisions and risk management.