For those who want to trade currency at night, you should stick to cross-pairs with Asian or Oceanic currencies. This is because you can take advantage of retracements. Most large movements in currency pairs retrace at night, and you can profit from that. For instance, the EUR/USD pair may correct overnight in Asian markets, so you can make profits on retracements by buying and selling at night.
A common currency pair to trade at night is the Australian dollar and the Japanese yen. This pair is less volatile than US dollar-denominated currency pairings, but still offers good exposure to both the Australian and Japanese economies. The Australian economy depends on the export of natural resources, making the Australian dollar a commodity currency. In turn, the Japanese yen is influenced by changes in the US economy and is very sensitive to the outlook for global economic growth.
In addition, traders can also benefit from the upcoming major economic announcements in Asia, which often have a lasting impact on the prices of Asian currency pairs. In this way, the night forex markets can give traders a head start on the next big move. Whether or not to trade all currency pairs at night depends on your risk tolerance and trading strategy. As long as you re comfortable with this level of risk, however, it s an excellent way to learn the ins and outs of the forex market.
As mentioned, it s better to monitor your investments at night as the market volatility is usually lower. However, keep in mind that currency pairs don t move much at night, and you should stop trading when you see minimal price movement. This will allow you to learn more about the gaps that are forming in the market, and increase your capital at night. You should consider using automated Forex robots and trading systems to protect your investments and eliminate the work from your shoulders.
If you re looking for a currency pair that will move a lot, EUR/USD is a good choice. During the night session in the EU/US, activity is at its lowest, but activity increases during the morning session. You can look for opportunities in big moves, breaking news, or a major trend gaining strength. During the New York session, the market is open from 12:00 UTC to 21:00 UTC. The best currency pairs to trade at night are those paired with the USD.
Another important time to watch for volatility is the overlapping European and Asian sessions. European markets tend to close around 7:00PM EST, which gives you time to trade currencies against each other. By the time London opens, Singapore and Tokyo are still open. During this time, there s plenty of liquidity in the EUR/USD and GBP/JPY currency pairs. You ll also find plenty of liquidity during this period because European and Asian markets are open at the same time.
As long as you re willing to stay up late, there are some important things to consider when choosing the best currency pairs to trade at night. You must first understand the dynamics of the currency pair you re trading. You can start by trading a major currency pair and then gradually branch out to other instruments. If you re new to forex trading, I recommend starting with a major currency pair and then moving on to the more challenging pairs as you gain more experience.
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