- Trading EUR/USD
- How the EUR/USD Price Changes?
- EUR/USD Trading Brokers
- Best hours of the day to day trade the EUR/USD
- How to Trade the EUR/USD in Binary Options
- Currency Trading Positions
- Trading EUR/USD
- EUR/USD Trading Positions
- Why Day Trade EUR/USD?
- Forex Options Trading
- Influences on Movement
- Political Events
- How to trade the EUR/USD: Tips & Trading Strategies
- Economic Growth
- Monetary Policy
- Currency Correlations
- Eur usd options trading
- EUR/USD Day Trading Strategy
Representing the world’s two largest economies, it is perhaps little surprise to learn the EUR/USD is the most popular traded currency pair in the world. But whilst rich volatility and volume attract day traders from all over the world, generating substantial profits is no straightforward feat.
How the EUR/USD Price Changes?
This page will break down the history of the EUR/USD, why to trade it and how to trade it in 2020, including online charts, signals, strategy, exchanges, news and more.
EUR/USD Trading Brokers
Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets. Great choice for serious traders.
Pepperstone of spreads from 0.0 pips on the Razor account and have almost 60 pairs available to trade. Lots start at 0.01.
Binary.com deliver advanced forex trading via the MetaTrader5 platform and 3 Account Types
Forex trading is offered on 55 pairs, with spreads from just 1 pip on the Exclusive Account.
NinjaTrader offer Traders Futures and Forex trading.
Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.
Invest.com provide portfolio management plus standard trading.
Best hours of the day to day trade the EUR/USD
Leverage and spreads improve with each account level - Bronze, Silver or Gold
Alpari International offer forex over a huge range of pairs including Major, minor and exotic pairs. All with competitive spreads and laddered leverage.
Trade 33 Forex pairs with spreads from 0.0 with the 'Zero' account.
Prices quoted to 5 decimals places, and leverage up to 1:1000
Vantage FX are a Raw ECN Forex broker, regulated by ASIC is Australia. Boasting MT4, MT5 and Webtrader platforms, a range of account types and a deposit bonus of up to 50%
Trade over 70 pairs and keep trading costs to a minimum, with tight spreads or the lowest commissions with Fusion
Just2Trade offer hitech trading on stocks and options with some of the lowest prices in the industry
New Forex broker Videforex can accept US clients and accounts can be funded in a range of cryptocurrencies.
Payouts reach 95% per trade.
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
Free Unlimited Demo Account.
76.4% of retail accounts lose money.
69% of retail accounts lose money with this provider.
CFDs carry risk.
64% of traders lose.
68.15% of retail accounts lose money.
How to Trade the EUR/USD in Binary Options
With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment.
80% of retail accounts lose money.
FCA and ASIC regulated.
68.5% of retail investor accounts lose money when trading CFDs with this provider
76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
75% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
75% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you can afford to take the high risk of losing your money.
73.2% of retail accounts lose money with this provider.
They also offer negative balance protection and social trading.
77.2% of retail accounts lose money with this provider.
86.24%% of retail accounts lose money with this provider.
68% of retail spread betting accounts lose money with this provider.
Offering Forex and CFDs with competitive spreads and a customer service focus.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.16% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Currency Trading Positions
You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
71% of retail accounts lose money with this provider.
They offer 3 levels of account, Including Professional.
77% of retail accounts lose money.
72% of retail accounts lose money.
See if this new brand could work for you.
82.11% of retail accounts lose.
78.3% of accounts lose money when trading CFDs.
73% of retail CFD accounts lose money.
83% of retail accounts lose money.
Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
77% of retail accounts lose money with this provider.
Companies under the FXCM umbrella are also regulated in Australia and Canada.
73.62% of retail accounts lose.
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Why Day Trade EUR/USD?
As the most popular of the major pairs, the EUR/USD trade vehicle is often highlighted on trading platforms and exchanges. But why do so many day traders opt to pursue profits from this pair?
- Prevalence – They are the two most popular reserve currencies.
Their size leads to an abundance of financial data on the pairing being released. This also makes them relatively straightforward to follow.
- Liquidity – The EUR/USD promises consistent liquidity, plus low bid-ask spreads.
- Volume – The huge numbers of active traders and market speculation ensure relatively high levels of volatility. All of which can lead to greater profit potential.
- Availability of resources – In some ways, short and long-term forecasts are now easier to make.
You have access to historical graphs, candlestick and monthly charts, plus customisable indicators. Conducting Elliott wave analysis is more straightforward, for example. In addition, you have online active trading communities. These are often full of weekly forecasts and predictions for today.
So, with historical data downloads just a few clicks away and spreads plastered across the internet, intraday traders have plenty of access to the necessary information.
Despite a number of benefits to trading the EUR/USD pair, there also exist certain drawbacks:
- Volatility – The high levels of volatility within the EUR/USD pair can result in winning positions swiftly turning into losing ones.
Forex Options Trading
Often, no amount of historical data and 20-year charts can prepare you for the speed at which prices can swing.
- Leverage -Admittedly, trading on margin may increase your potential profit. However, it can also amplify losses.
So, if you do utilise leverage, making accurate daily and next week forecasts is essential.
- Automated competition – Unfortunately, even with attractive forward and live quotes, competition is now fierce. You are trading against an increasing number of trading algorithms. You have to manually analyse and react to a bullish market with your interactive chart. However, bots will automatically enter and exit positions once certain criteria have been met.
Influences on Movement
Another crucial factor is the political landscape.
How to trade the EUR/USD: Tips & Trading Strategies
Instability, as seen in the Brexit referendum, can all influence the direction of the currencies. Yet it isn’t just major elections that play a part, events such as Switzerland’s decoupling from the euro peg will also hit exchange rates.
The challenge comes in keeping an eye on the numerous countries within the eurozone. So, keep abreast of the latest political and economic news.
Combine recent events with EUR/USD historical data on a simple Excel. This will allow you to make more accurate forecasts for 2018 and beyond.
You will find your EUR/USD live analysis makes far more sense if you have a thorough understanding of what influences direction.
The biggest factor is the strength and outlook of the two economies.
Put simply, if the European economy grows faster than the US economy, the euro will strengthen against the dollar, and vice versa.
A telling gauge of economic strength is interest rates.
For example, the dollar normally strengthens when US interest rates are higher than those of big players in European economies.
As touched upon above, there is also a correlation between monetary policy implemented by the respective central bank and the EUR/USD relationship.
This was seen in the 2007 global financial crisis, which was one of the greatest reductions in the euro vs USD history.
During this period, there was an unusual separation between the policy from the US Federal Reserve (Fed) and the ECB in particular.
The Fed looked to aggressively stimulate the US economy early on, with QE measures.
The ECB, however, delayed QE measures. The US were purchasing sovereign bonds as a stimulus measure for years before the ECB followed suit.
The two also had somewhat different priorities. Whilst the Fed aimed to increase employment as well as stabilise prices, the ECB was mainly concerned with price stability.
The effect was most forex news stories focusing on the actions of the Fed, whilst the ECB took a back seat.
Throw in that many member states were struggling with crippling debt and people soon began to question the longevity and efficacy of a universal monetary policy.
Unsurprisingly, this all led to strange fluctuations between the EUR/USD. Today, therefore, many that are investing focus on projections and expectations of central bank policy to help them form strategies around the EUR/USD.
Whilst you may focus your trading efforts on the EUR/USD, there are certain correlations with other currencies to be aware of.
You will notice that some currencies feature in numerous currency pairings. This is because all currencies are interlinked. None of them trade entirely independently of each other.
Their relationships are known as positive and negative correlations.
- Positive correlation – This is when pairs react in line with each other.
The three most popular pairs, GBP/USD, AUD/USD, and EUR/USD, are all positively correlated. This is a result of USD being the counter currency. So, any change in the US dollar will impact all the pairs.
- Negative correlation – This is when currency pairs react in the opposite direction.
Popular pairs include USD/CHF, USD/JPY, and USD/CAD.
Eur usd options trading
For those unsure which is the base currency, it is the US dollar. This means they move in the opposite direction of the previously mentioned majors where the US dollar plays the counter.
A EUR/USD trader can use this knowledge to better understand the implications of movement in certain pairs.
Let’s take the British Pound vs the US dollar, for example. When trading this pair, to an extent, you are also trading the Euro vs the British pound.
Unfortunately, it isn’t quite that straightforward. Economic factors and market speculation can result in shifts in currency correlations. A negative correlation may turn positive and vice versa.
EUR/USD Day Trading Strategy
An effective EUR/USD strategy is more than understanding how you can use pip values and calculators to your advantage.
It’s also more than getting a feel for premarket sentiment. It’s about using your investing chart in realtime to consider tick data and weigh up your options.
Once you have a solid grasp of how EUR/USD market forces interact, you will need to turn your attention to a strategy. 5-minute, 30-minute, weekly, and all-time charts may prove useful, but knowing when to trade is just as important.