The average true range or ATR is the average daily movement for any currency pair. How many pips does EURUSD move daily? The average daily range for EURUSD on date 02. March 2020. is 59 pips. EURUSD, the most heavily traded currency pair in the world, had an average daily movement from 34 pips to 72 pips in the year 2019. In March 2015. was the highest average daily movement of around 194 pips.
As we can see in the last 5 years EURUSD volatility is lower and lower each year. The average range is important because it helps traders to make stop loss and targets on the right level and to calculate projected profits and loss in a better way.
For the previous ten years, most of the time the daily average had a rate of over seventy pips. In fact, there have been long periods as well where the rate was over one hundred pips.
At the commencement of the year 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 difficult to engage in jumping into and out of trading efforts while securing a profit in such instances of taking into consideration the spread as well as the commissions.
There has been the offsetting of this issue via lower spreads being offered by some brokers at a rate of 0.1 pips. As a result, small moves are easier to notice. You are truly at more of a disadvantage when the spread is larger.
It is important to give consideration to volatility in the realm of day trading, as this can have a high impact on the manner in which traders make their trades and the number of profits they achieve from their trades. In addition, it is highly likely that those who are new to the world of trading do not realize that the EURUSD has over its history been traded under many different results. Also, the traders that have more experience for at least a few years may tend to struggle in relation to the regular decrease in the volatility pertaining to the EURUSD pair.
With this being the case, it is wise to examine the aspect of the volatility of the EUR USD at this present time. It is important to then use the statistics that are presented in order to help with one’s own personal trading efforts.
The volatility of the EURUSD can be seen by the day of the week as well as the hour of the day. We wrote recently an article about best trading time for EURUSD in GMT time zone. If this is the case, you can personally adjust the chart to suit your time zone. See Figure below:
It is common for the hours that possess the predominant amounts of movement to be 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 the movement of the market of New York 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 in order to experience the least EURUSD volatility and the best profits.