EURUSD is the most traded currency pair in the world. That liquidity gives it tight spreads and generally clean reactions at technical levels, which is why many traders learn on it and many funded traders keep it as their main pair.
What moves it
- The difference between US Federal Reserve and European Central Bank policy.
- US data (CPI, NFP) and euro-zone data (inflation, PMIs, German data).
- Global risk sentiment and flows into or out of the dollar.
Best sessions
The London session (from 07:00–08:00 UTC) and the London–New York overlap (roughly 12:00–16:00 UTC) concentrate most of the volume. During the Asian session EURUSD usually moves in a small range.
A calm approach
- Mark the Asian range and the previous day's high and low.
- In London, trade pullbacks in the direction of the 4-hour trend or the breakout of the Asian range.
- Typical stops: 10–20 pips; size for 0.5–1% risk.
- Avoid new trades around ECB and Fed decisions and US data releases.
Pip value
On EURUSD, one pip on a standard lot (100,000 units) is worth about $10. A 15-pip stop on 1 lot risks about $150. On a $100K account at 0.5% risk ($500), a 15-pip stop allows roughly 3.3 lots.