Forex day trading may attract many investors for its 24 hours open market every day. Yet, a good forex day traders should trade particular forex pair only when it is active and there are many volume and transaction occur. Thus, there is also the best time to forex day trade EUR/USD pair.
There are certain hours that EUR/USD has enough volatility to generate profit for day traders. To efficiently gain the biggest moves of the day, day traders often trade in a specific 3-4 hours window.
EUR/USD Volatility Impact
It is true that forex global market is open for 24 hours during the week. Yet, not all of the global markets actively trade particular currency. Thus, different forex pairs are traded during the different times of the day.
For instance, if Europe is open for business, then any pairs involving euro (EUR) or British pound (GBP) are more actively traded. Consequently, the time when the EUR/USD is likely to be actively traded will be when London and New York are open.
Those markets are open around 08.00 to 22.00 Greenwich Mean Time (GMT). Now, convert that hour in your own timezone or your broker’s time zone to get the major active market of EUR/USD. Or else, you can also use the forex market hours tools.
Acceptable times for EUR/USD day trade
From 08.00 to 22.00 when the markets open, there is an increasing amount of movement between 07.00 to 20.00 GMT. After that hour, the movement begins to slow down drastically. Even when volatility always changes, but those hours have proven do not witness too many changes.
Therefore, day traders should ideally trade between those hours. If they trade outside those hours, they will get a small pip movement that is not large enough to compensate for the commission or the spread.
Ideal times for EUR/USD day trade
The ideal time to day trade EUR/USD is between 13.00 to 16.00 GMT for maximum efficiency. During that time, there are the biggest moves of the day. In other words, a day trader may capture the bigger profit potential will least spread and commissions during that time.
