If you are trading currencies on the forex market, you will need to determine the best time to trade. In most cases, the best time to trade is around the time of important news releases and economic events. The US dollar is the most commonly traded currency, so it is important to pay attention to US economic news. Then, observe trends.
In the Forex market, the US dollar and the Euro are the most popular currencies. In fact, they are often traded at the same time. This overlap creates more trading opportunities, resulting in higher price ranges. However, it should be noted that the overlaps between the two markets occur only once every three hours.
The main forex trading sessions are based on four major exchanges. Trading in the US dollar during these sessions can be a great way to time your trades. As the world’s largest financial center, New York’s trading session is a prime time for trading the US dollar. In addition, other currencies, including the Australian dollar, are traded during these sessions as well.
Although the forex market is open around the clock, there are certain hours that are more active. For example, the first half of Monday trades are linked to high volatility. Traders typically don’t carry over their trades into the weekend. Also, the last half-hour of Friday is a prime time for market preparation and observing trends.
