How to Trade EUR/USD: Top 5 Tips to Boost Your Trading

Posted in Trading Knowledge
5 minute read
How-to-Trade-EUR-USD-Hero

Enhance your trading EUR/USD trading ability with five tips for your trading, covering monetary policy, fundamental events, key correlations, and more.

Five Tips for Trading EUR/USD

Intro

EURUSD-Five-v1
An image showing EUR/USD’s share of total forex market trading volume. Past performance is not indicative of future results. Bank for International Settlements (BIS)¹

EUR/USD: The world’s most traded currency pair

1. Track ECB and Fed monetary policy

ECB Interest Rate vs. Fed Interest Rate-v2 (1)
A chart comparing ECB and Fed headline interest rates, 03/2020 - 09/2024. Past performance is not indicative of future results.

2. Understand market risk appetite

Risk-on-Risk-off-v1
A table of typical ‘risk-on’ and ‘risk-off’ currencies. Past performance is not indicative of future results.

3. Analyze Eurozone and U.S. economic data

4. Pick the right time to trade

Lon-NYC-Sessions-v1
A chart showing EUR/USD price action, with the London and New York trading sessions annotated. Past performance is not indicative of future results.
Trading-Sessions-v2
An image to show the four primary trading sessions, Sydney, Tokyo, London, and New York, and how they overlap. Past performance is not indicative of future results.

5. Understand key EUR/USD correlations

EUR-USD-GBP-USD-AUD-USD-NZD-USD-v1
A chart showing EUR/USD, GBP/USD, AUD/USD, and NZD/USD price action. Past performance is not indicative of future results.

Practice on a demo account

Footnotes