What are the best forex pairs to trade during each session?

Have you ever felt lost in the 24-hour world of trading currency pairs? It’s not just you. Finding the right currency pairs to trade and when to can feel like trying to solve a puzzle with moving pieces. However, we have your back. In this article, the market’s daily patterns will be understood and you will be informed about the pairs that shine during each session. There’s a trade opportunity waiting for you, regardless of your sleeping habits. Let’s dive into the exciting world of the trading sessions. 

Understanding Forex Trading Sessions

Although the foreign exchange market is open around the clock, its activity is not always equal. There are four main sessions, each with a distinct personality makes up the program:

• Sydney session - holds from 10 PM - 7 AM GMT

• Tokyo session - holds from 12 AM - 9 AM GMT

• London session - holds from 8 AM - 5 PM GMT

• New York session - holds from 1 PM - 10 PM GMT 

Every session is unique; some currency combinations are more active at particular periods than others. Let’s examine each session and the best currency trading pairs to trade.

Sydney Session

The trading day begins with this session which is usually calm. These pairs involve the Pacific region, so they tend to see more action during this time. If you are an early bird or a night owl, consider these pairs:

• AUDUSD

• NZDUSD

• AUDJPY

These currency pairs involve the Pacific region, so they tend to see more action during this time.

Tokyo Session

Whenever Asia wakes up, things start to get active. Tales have been told about the Japanese Yen in this session, it mostly steals the stage. Anyways, keep an eye on:

• USDJPY

• EURJPY

• GBPJPY

These yen pairs experience a spike in activity whenever Japanese traders enter the market.

London Session

This session is the most active in the forex world. Tons and tons of trades are taking place here.  These pairs involve major European currencies, so it only makes sense that they are active during European business hours. Popular pairings include;

• EURUSD

• GBPUSD

• EURGBP

• USDCHF

New York Session

New York assumes control while London fades. When it coincides with London, it can be quite volatile so be careful. American economic news frequently hits the market, making the US dollar pairs busy. In the meantime, keep your eyes on these pairs;

• EURUSD

• USDCAD

• USDJPY

• XAUUSD

• EURCAD

Tips For Trading Different Sessions

• Align your trading approach with the personality of the session. While swing traders may favor trends that begin in one session and last into the next, scalpers may relish London’s volatility.

• Observe the economic calendars. Know when major news is coming out for the currencies you’re trading.

• Keep an eye out for overlaps in sessions. When London and New York are both open, big moves happen.

• Remember to account for liquidity. The big pairings (like EUR/USD and USD/JPY) are typically the easiest to trade during these sessions and have the tightest spreads.

• Practice using a demo account to understand how different pairs act during each session.

Conclusion

Choosing the best currency to trade right now on the forex market requires more than just timing your selections. You have an advantage over the competition if you comprehend how the market moves during its various trading sessions. However, be conscious of the fact that no single strategy works for everyone. What works for your trader friend in Tokyo might not work for you who burns the midnight oil in New York. The secret is to discover your rhythm, time it to the pulse of the market, and practice. Use these tips as your starting point, never be scared to experiment so you can discover what works for you. With patience and persistence, you’d be dancing to the beat of the forex market like a pro.