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 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 from 70 pips.
All these numbers we got from ATR Average True Range indicator.
As we can see in the last 5 years, EURUSD volatility is lower and lower each year. The average range is significant because it helps traders stop loss 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 been long periods as well, where the rate was over one hundred pips.
At the commencement of the year 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.
There has been offsetting 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. However, you are genuinely at more of 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 from their trades. The traders with more experience for at least a few years may struggle with the regular decrease in the EURUSD pair’s volatility. Also, likely, 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. 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 important to use the presented statistics to help with one’s own personal 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 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 best profits.
Forex pair daily range
The average daily trading range for currency pairs is 54 in the year 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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