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. EURUSD, the most heavily traded currency pair globally, had an average daily movement from 63 pips in the year 2019.
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 important because it helps traders stop loss and targets on the right level and calculate projected profits and losses better.
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 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 considering the spread and 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 consider volatility in the realm of day trading, which can significantly impact how traders make their trades and the number of profits they achieve from their trades. 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. It is important to use the presented statistics then 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 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 the movement of New York’s market 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
Each forex pair has different average volatility. Please see the major forex pairs daily range below:
| London session forex pairs | Average daily pip movement |
|---|---|
| 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 |
