October 15, 2014

Average Daily Trading Range Of The Major Forex Pairs In October 2014

At this time of the month I always like to look at the average daily trading range of all the major currency pairs, as well as some of the other popular markets.

So you will find listed below the average trading range of all of these markets right now in October 2014 (based on the ATR indicator), alongside the September figures in brackets for the sake of comparison:

GBP/USD - 103 (84)
GBP/JPY - 129 (105)
EUR/USD - 86 (61)
EUR/GBP - 41 (46)
EUR/CHF - 21 (19)
USD/JPY - 73 (53)
USD/CAD - 75 (61)
USD/CHF - 63 (45)
AUD/USD - 90 (63)

FTSE 100 - 89 (50)
DOW JONES - 189 (100)
NASDAQ - 56 (31)
S & P 500 - 25 (14)

BRENT CRUDE - 197 (141)
CRUDE OIL - 211 (151)

You will immediately notice that volatility has shot up pretty much across the board. Apart from the EUR/GBP pair, every single market is trading in a much larger trading range this month, which will inevitably please many day traders.

The major world indices and the oil markets are the ones that have really increased in volatility, rising by around 80-90% in some cases. So there are no shortage of markets to trade right now if you are looking to profit from large intraday price swings.

A few months ago we were all moaning about how quiet all of the markets were, particularly the major forex pairs, but there are no excuses right now because all of the markets are extremely volatile at the moment.

Of course just because we are seeing some big price moves on a daily basis, it doesn't necessarily mean that it is easy to make money. However it does make things a little easier because you can extend your price targets, and you should hopefully find that you won't get stopped out all the time, which can happen when the markets are quiet.

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