A trading session is a period when banks and other market participants trade actively. The forex market works round the clock from Monday to Friday. When night falls in one part of the globe and the local market shifts into a sleeping mode, the sun rises in the other part of the planet, and trades start there. This process is non-stop, so traders can work at any time they want. The exception is the weekends and international holidays such as Christmas, New Year’s Eve, and Easter. These days, the currency market is closed.
Live Forex Trading Session
Winter Forex Trading Hours (October – April)
|Time Zone||GMT||EST Time|
|Sydney Opening||9:00 PM||4:00 PM|
|Sydney Closing||6:00 AM||1:00 AM|
|Tokyo Opening||11:00 PM||6:00 PM|
|Tokyo Closing||8:00 AM||3:00 AM|
|London Opening||8:00 AM||3:00 AM|
|London Closing||5:00 PM||12:00 PM|
|New York Opening||1:00 PM||8:00 AM|
|New York Closing||10:00 PM||5:00 PM|
Summer Winter Forex Trading Hours (April – October)
|Time Zone||GMT||EST Time|
|Sydney Opening||10:00 PM||6:00 PM|
|Sydney Closing||7:00 AM||3:00 AM|
|Tokyo Opening||11:00 PM||7:00 PM|
|Tokyo Closing||8:00 AM||4:00 AM|
|London Opening||7:00 AM||3:00 AM|
|London Closing||4:00 PM||12:00 PM|
|New York Opening||12:00 PM||8:00 AM|
|New York Closing||9:00 PM||5:00 PM|
1. Pacific Trading Session
The work on the currency market starts with the opening of the Pacific trading session, the calmest one. No sharp fluctuations are usually seen here. As a rule, prices barely move, the market stands still, and the currency quotes trade sideways during the Pacific session. Professional traders tend to avoid opening deals in this period, but they continue monitoring the market movements, watching for a break of some key psychological or historical levels, the formation of a new trend, or price reversals.
For newbies, it is the most suitable period for learning and making their first deals as the risk is minimal. Besides, some automated trading systems that are adjusted for flat trading can prove to be efficient during the Pacific session. However, there can be some periods of heightened volatility when the US Federal Reserve System announces the results of its regular policy meeting. The immediate reaction to these announcements can be rather sharp so that it can have a significant impact on the price dynamics.
AUD/USD and NZD/USD are the currency pairs that are most often traded during the Pacific session. It is so because the Australian and New Zealand dollars are the national currencies of the Pacific region states.
2. Asian Trading Hours SessionAt the opening of the Asian trading session, the market comes to life, and currency quotes start moving faster. The intense activity is usually seen in the early hours of the session when key macroeconomic reports are published. At this time, Japan, Australia, and New Zealand often deliver their statistics.
The EUR/JPY, USD/JPY, and AUD currency pairs are the most active ones in the Asian session. The EUR/USD pair is worth special attention as it is volatile in any trading session. Statistically, when the pair demonstrates sharp fluctuations in the American session, it usually consolidates in the Asian session.
The liquidity is usually low during the Asian session. Most currency pairs trade in narrow ranges preparing for stronger movements in the subsequent trading hours. The Asian stock exchanges often set the trend for the rest of a trading day.
The market is moderately volatile, so that any trading style can be applied here. Given the unhurried pace of the price movements, traders act similar to hunters. They have to wait long and patiently for their prey, but a fine shot can bring decent profits.
3. European Trading Hours Session
The European trading session is the most lively and eventful one. The trade volumes here are large, so the trading activity is heightened. Mostly, sustainable trends on the market are formed during the European session. Traders need to bear in mind this fact. Besides, false signals are frequent in this period, as the European dealers test the market, try to find the congestion of stop orders, and spot support and resistance levels.
The beginning of the session is usually calm, and the price movements speed up at the opening of the London Stock Exchange.…
It is the traders’ favorite period, as the volatility is high and EUR, USD, and GBP pairs are most actively traded.
The peak of activity is usually seen in early and late hours, while in the afternoon, traders take a short break. The price trends usually change at the end of the session.
Any currency pair can be traded during the European session, but most often traders open deals with EUR/USD, GBP/USD, USD/JPY, and USD/CHF pairs as well as EUR/JPY and GBP/JPY cross rates.
Experienced traders like the European session as it can provide ample opportunities for reaping hefty profits. An ability to analyze a large amount of information and define the market tendencies promptly can yield generous gains.
4. American Forex Trading Hours Session
An outburst of trading activity is usually witnessed during the American trading session, involving huge sums and captivating the attention of millions of traders around the world. It is the most aggressive, unpredictable, and potentially profitable trading session. Market participants largely focus on the release of the news that often causes mixed and chaotic currency movements. The price trends that are formed in the European session can either continue or reverse during the American session.
Geographically, the American session covers not only the United States but also in Canada and Brazil. Traders pay special attention to USD and CAD currency pairs. Besides, JPY pairs also become highly volatile in this period. Those market participants who are not afraid of sharp swings open deals on such cross-rates as GBP/JPY and GBP/CHF.
There is one more essential aspect. It is no secret that the European banks are as influential as the American banks, so the first ones partially offset the importance of the latter. Therefore, the highest volatility is observed when the European session closes, and the US banks get the ultimate power.