If we detect the highest high price during the day and the lowest low price level, we can get a daily average true range for EURUSD. The true average range or ATR is the average daily movement for any currency pair. Usually, traders use the ATR volatility indicator to analyze daily, weekly, and monthly volatility.
How many pips does EURUSD move daily in 2022?
The EURUSD average daily pips volatility in 2022. was 95 pips, where the highest daily range was 217 pips (June 16. 2022.), and the lowest daily range was only 34 pips (April). Currently, in the summer of 2022., EURUSD volatility has increased.
If we analyze EURUSD daily move, we can conclude that during the Euro session and US session overlap (around 16 hours GMT+1), volatility is the highest, and the EURUSD moves the most in the afternoon. Please check volatility in pips per hour for EURUSD:
As we can see on the chart above, the highest number of pips (highest volatility) is around 16 hours (16 hours GMT+1) when the US market and EU market overlap. In 2022. The highest daily move for EURUSD was around 37 pips on average at 4 pm GMT+1.
Results are similar to the same as for GBPUSD (read our article How Many Pips Does GBPUSD Move Daily in 2022)
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During the week, EURUSD moves the most during Thursday. For example, EURUSD in 2022. has 113 pips volatility during Thursday, while the least volatility was on Mondays, around 82 pips on average (see image below).
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Finally, for the last several years, the average EURUSD volatility was 75 pips.
The most interesting year for EURUSD was 2020., the year of the COVID-19 recession and increased volatility.
How many pips did EURUSD move daily in 2020?
The average daily range for EURUSD in 2020. was 74 pips, the highest daily range was 332 pips (March 19. 2020.), and the lowest daily range was only 17 pips. As a result, EURUSD, the most heavily traded currency pair globally, had an average daily movement of 70 pips.
All these numbers we got from ATR Average True Range indicator.
As we can see in the last 5 years, EURUSD volatility has been lower and lower each year. The average range is significant because it helps traders stop losses and targets on the right level and better calculate projected profits and losses.
For the previous ten years, most of the time, the daily average had a rate of over seventy pips. But there have also been long periods where the rate was over one hundred pips.
At the commencement of 2019, the EURUSD experienced a drop to a rate of under sixty pips and has predominantly remained at that rate. This has caused the day trading of the EURUSD to become more problematic when such rates are indicated on the EURUSD volatility chart.
This has become more difficult as a result of there being fewer movements to view. Concerning the EURUSD, It is much more challenging to jump into and out of trading efforts while securing a profit when considering the spread and commissions.
This issue has been offset via lower spreads offered by some brokers at a rate of 0.1 pips. As a result, small moves are easier to notice. However, you are at a disadvantage when the spread is more significant.
It is essential to consider volatility in day trading, which can significantly impact how traders make their trades and the number of profits they achieve. The traders with more experience for at least a few years may struggle with the regular decrease in the EURUSD pair’s volatility. Also, those new to the world of trading likely do not realize that the EURUSD has, over its history, been traded under many different results. The traders with more experience for at least a few years may struggle with the regular decrease in the EURUSD pair’s volatility.
With this being the case, it is wise to examine the EUR USD volatility at this present time. Furthermore, it is essential to use the presented statistics to help with one’s trading efforts.
The volatility of the EURUSD can be seen by the day of the week and the day’s hour. We recently wrote an article about the best trading time for EURUSD in the GMT zone. If this is the case, you can personally adjust the chart to suit your time zone. See the Figure below:
It is common for the hours that possess the predominant movement to range from seven in the morning until four in the afternoon. This is in correlation to the market in London. Then there may be an uptick in New York’s market movement around one in the afternoon. If this is the case, if your time happens to be after the movement, you should conduct trading from seven in the morning to four in the afternoon according to the time zone presented on the chart to experience the least EURUSD volatility and best profits.
Forex pairs’ daily range
The average daily trading range for currency pairs is 54 in 2021 (major forex pairs). Each forex pair has different average volatility. Please see the major forex pairs’ daily range below in the Table:
| Major forex pairs | Forex average daily range in pips |
|---|---|
| EUR/CHF | 35 |
| NZD/USD | 39 |
| USD/JPY | 41 |
| EUR/USD | 44 |
| USD/CHF | 44 |
| EUR/GBP | 50 |
| EUR/JPY | 55 |
| USD/CAD | 56 |
| GBP/USD | 82 |
| GBP/JPY | 94 |
| Average pip movement | 54 |
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He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
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