Trading EUR/USD

The EUR/USD is the most traded currency pair by volume. For UK investors, the major forex pairing offers significant profit potential. Here we discuss how to start trading the EUR/USD, taking into account historical rates, long-term forecasts and market news. We also explain how to read FX live charts for technical analysis so you can implement an effective trading strategy.

EUR/USD Trading Brokers

  1. Pepperstone

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    Pepperstone provides forex spreads on the EUR/USD averaging just 0.12 pips with their Razor account. This is highly competitive. Their extensive portfolio includes over 100 currency pairs, which exceeds what most rivals offer. Furthermore, Pepperstone stands out by offering three unique currency indices: USDX, EURX, and JPYX, which are rare on other platforms. They have been recognised with our 'Best Forex Broker' award twice.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.4 0.1 0.4
    Total Assets FCA Regulated Platforms
    100+ Yes MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower

  2. XTB

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    XTB offers access to over 70 currency pairs, with competitive spreads averaging about 1 pip for major pairs. Its xStation platform is user-friendly, providing traders with top-tier charting tools, over 30 indicators, and diverse order types to support different strategies and risk management needs.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    1.4 1.0 1.4
    Total Assets FCA Regulated Platforms
    70+ Yes xStation

  3. FXCC

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    FXCC champions its competitive forex trading environment. ECN spreads can drop to an impressive 0.0 pips during busy trading periods. Offering more variety than many competitors, it supports over 70 currency pairs. Furthermore, traders benefit from MT4, renowned for its exceptional charting capabilities, specifically designed for forex trading.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    1.0 0.2 0.5
    Total Assets FCA Regulated Platforms
    70+ No MT4, MT5

  4. Vantage FX

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    Vantage provides over 55 currency pairs, exceeding the industry norm, giving traders ample opportunities. With a robust liquidity pool, forex spreads start at 0.0 pips on the ECN account, often beating other options. Additionally, there are no commissions, deposit fees, or hidden charges.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.5 0.0 0.5
    Total Assets FCA Regulated Platforms
    55+ Yes ProTrader, MT4, MT5, TradingView, DupliTrade

  5. IC Markets

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    IC Markets remains dedicated to offering tight 0.0-pip spreads on major currency pairs like EUR/USD, ensuring outstanding execution with an average speed of 35 milliseconds. Ideal for traders seeking high performance, those dealing in large volumes can also enjoy rebates of up to $2.50 per forex lot.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.23 0.02 0.27
    Total Assets FCA Regulated Platforms
    75 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower

  6. FXPro

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    FxPro provides over 70 currency pairs, though minors are excluded, and is renowned for its rapid execution and tight spreads, averaging 0.45 pips on EUR/USD. Traders can design, evaluate, and implement short-term strategies using the top-tier MT4 platform with expert advisors for algorithmic trading.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.6 0.45 0.73
    Total Assets FCA Regulated Platforms
    70+ Yes FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower

  7. IG Index

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    IG provides an extensive selection of over 80 currency pairs through its own web platform, mobile app, or MetaTrader 4. For advanced charting and forex analysis, the ProRealTime software is available. Testing shows forex spreads are competitive, beginning at 0.1 pips on major pairs such as EUR/USD.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.9 0.8 0.9
    Total Assets FCA Regulated Platforms
    80+ Yes Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime

  8. Forex.com

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    FOREX.com maintains its status as a leading foreign exchange broker, providing access to more than 80 currency pairs at highly competitive rates. Standout features include EUR/USD spreads starting at 0.0 and a $5 commission per $100k traded. Additionally, its SMART Signals feature aids traders by pinpointing price trends in major global markets.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    1.3 1.2 1.4
    Total Assets FCA Regulated Platforms
    80+ Yes MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

  9. Eightcap

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    Eightcap provides over 50 currency pairs, matching the industry norm but falling short of leaders like CMC Markets, which offers more than 300. Nonetheless, Eightcap distinguishes itself with institutional-quality spreads starting from 0.0 pips on major pairs such as EUR/USD. The broker's competitively low commissions at $3.50 per side further enhance its appeal. Eightcap also equips traders with comprehensive forex data, including essential fundamentals, bullish and bearish signals, and a calendar monitoring significant foreign exchange market events.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.1 0.0 0.1
    Total Assets FCA Regulated Platforms
    50+ Yes MT4, MT5, TradingView

  10. PrimeXBT

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    PrimeXBT provides trading services for more than 50 major, minor, and exotic currency pairs, with the benefit of margin trading and no commission fees. Our recent assessments show the platform to be fast, dependable, and well-equipped, featuring three chart types, ten timeframes, and 91 technical indicators. This makes it ideal for those employing active trading strategies.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    Variable 0.1 Variable
    Total Assets FCA Regulated Platforms
    45+ No Own

The EUR/USD Explained

The Euro (EUR) is the authorised currency of respective European nations, used by over 400 million people each day. The US Dollar (USD) is the currency of the United States of America. The strength and value of both currencies are determined by geopolitical events, along with stability policies implemented by the European Central Bank and the US Federal Reserve.

The exchange rate forecast of the pair is simply the buy or sell price of the EUR vs USD, for example, a rate of 1.2176 means that 1 Euro would buy you 1.2176 US Dollars.

History Of The EUR/USD

The EUR/USD currency pair is a relatively new concept. The Euro came into existence in 1999 and was established by the European Community members and the European Currency Unit (ECU). Exchange rate history shows that the original EUR/USD live rate was 1.1686 in 1999.

Many economic events have impacted the EUR/USD price over the years, including Brexit and US presidential elections. Historical data graphs show the turbulent outlook of the FX pair, with monetary policies such as Quantitive Easing (QE) brought in by central banks in an effort to protect the strength of the currencies.

Despite a time when it looked as if the Euro may overtake the US Dollar as the world’s leading currency, the USD remains supreme. In fact, many smaller countries still peg the value of their local currency to that of the USD. The Euro is the world’s second largest currency.

Price Movement

To start trading the EUR/USD pair, you need a strategy that can help predict live and future price movements. Two leading techniques are fundamental analysis and technical analysis.

Fundamental Analysis

Fundamental analysis involves analysing related economic data, including GDP growth, unemployment levels, industry sentiment, and interest rates. This information can help you understand whether the Euro is likely to strengthen or weaken against the US Dollar. Many top forex brokers today offer integrated economic calendars with the latest news bulletins to support fundamental analysis.

Technical Analysis

Technical analysis involves inspecting price data to identify patterns. These graphical patterns can be used to inform investment decisions. Online volume charts and a host of technical indicators, including pivot points, can help you understand EURUSD market sentiment.

Essentially, historical price data can be used to identify entry and exit points along with resistance and support levels. Candlestick charts, for example, can point to bullish price patterns using a sequences of bars while the Elliott Wave theory and analysis can be used to show recurrent price movements and trend patterns in the financial markets.

EUR/USD Trading Strategies

There are many strategy and indicator options to outline how to enter and exit trades:

  • Timing – While different strategies will focus on particular opportunities, you may want to focus on when the market is most active. Volume charts show that for the EUR/USD currency pair, that’s between 13:00 and 16:00 GMT when both London and New York are open.
  • Breakout & Breakdown – If you analyse live price charts, you will see the EURUSD swings back and forth within clear ranges for much of the trading day. This can indicate trends towards new highs and lows. This can help you spot when support and resistance levels may break, which can lead to a rally or a sell-off. Always remember that it’s important to use tight stops and limits to protect your position in case the forex market moves against you.

Other useful indicators worth exploring when trading the EURUSD include Bollinger Bands, relative strength index indicators, Keltner channel volatility indicators and moving averages. All can can be implemented on the majority of live price charts and can be used to build an effective strategy.

It’s also worth considering the type of EUR/USD investing that you’re interested in:

  • Intraday trading – This will require time, careful analysis and an excellent broker with powerful realtime price charts.
  • Swing trading – Suitable for trading over a day or several days, swing trading lets you profit from notable price trends
  • Scalping – Another popular short-term strategy, traders open and close a large number of positions, often on short 1-minute or 5-minute trading charts.
  • Longer-term investing – Rather than active day trading, perhaps you want to take a monthly or yearly view on the direction of the Euro or US Dollar. In which case, you may want to buy and hold a large amount of one currency for an extended period.

Trading Hours

Trading the EUR/USD is possible 24/5 Monday through to Friday. However, as noted above, certain times see the most trading volume. And it’s often during this heightened period of activity that you’ll see the greatest pip value movement along with the tightest spreads and volatility leading to greater profits and reduced commissions. Between 1 pm and 4 pm GMT is when both London and New York are open and most trading on the EUR/USD currency pair takes place.

EUR USD forex trading

EUR USD forex trading

EUR/USD Investing Tips

Evaluate premarket conditions to understand the expected strength and direction of the EUR/USD before you start trading. Many brokers now offer weekly, monthly, or the latest FX rate forecasts, along with interactive charts, forums, and predictions for the currency pair today.

Other useful tools include a pip value calculator, leverage and margin calculators and risk management alerts. You can also download historical exchange rate data to excel, covering 5-minute and 30-minute graphs to 20-year or all time price charts. All of these tools can supplement trading.

Pros Of Trading The EUR/USD

There are several reasons to start investing in the EUR/USD:

  • Most actively traded FX pair
  • Competitive pricing quotes and tight spreads
  • Multiple investment vehicles, from CFDs to binary options
  • Extensive tools with live outlook projections and expectations of forward rates

Cons Of Trading The EUR/USD

  • Leveraged investing can lead to large losses
  • Fees, such as overnight interest and swap points
  • Intraday forecasts and correlations don’t always follow expected patterns
  • Traders are up against institutional investors with advanced automated investing algorithms

Final Word On Trading EUR/USD

The EUR/USD is the most actively traded currency pair. Each currency follow some of the world’s leading economic powers, bringing with it ample investing opportunities. With the right trading window and an effective strategy, the major FX pair offers high volatility along with serious profit potential. There’s also an excellent range of tools available online to help you understand central bank decisions, political news events, and market sentiment. Most brokers also offer a suite of tools, historical data downloads and real-time analysis tools to help you start investing.

Find out more about forex trading.

FAQ

What Is The EUR/USD Pair?

The EUR/USD is the abbreviated way to describe the Euro and US Dollar forex major. The currency pair shows how many US Dollars (quote currency) are needed to buy one Euro (base currency). The pair reflects the two largest and most powerful global currencies and can be used by investors to speculate on the relative strength of each currency. Forex trading on the EUR/USD pair usually takes place via a networks of banks through the decentralised OTC market.

Which Is The Base Currency In The EUR/USD Pair?

In this case, the Euro would be the base currency and the US Dollar the quote currency. The base currency signifies how much of the quote currency is needed for one unit of the base currency. EUR/USD bid and ask price reflects how much of the quoted currency can be bought or sold for one unit of the base currency.

When Is Best To Buy Or Sell The EUR/USD?

Many factors impact when to buy or sell currency pairs such as the EUR/USD. Market opening times, your investment strategy, historical data, price signals for today, and next week’s forecast may all influence expected buy and sell opportunities. Crucially, the right time to buy or sell is when you are most confident the market is going to spike or drop so you can implement a strategy that capitalises on the trend.

What Are EUR/USD Futures?

Forex futures are exchange rate traded contracts to buy or sell a specific currency, such as the EUR/USD, at a set price in the future. Forward contracts are available at multiple online brokers and offer an alternative investment vehicle to short-term day trading. You can also trade mini futures at a fraction of the corresponding futures contract. As with short-term forex investing, forward curves can be projected on broker charts and quotes are available through trading platforms.

When Is The Best Time To Trade EUR/USD Binary Options?

The best time to trade EUR/USD is arguably between 1 pm and 4 pm GMT. This is the crossover period when both London and New York markets are open and spreads are normally tightest. With that said, different strategies will lend themselves to different market windows.