When to trade?

Although you can trade from monday to friday 24 hours a day there are specific trade sessions when market falls asleep or experience its rush hours.

There are 4 main sessions:
1) Pacific ocean session - Market sleeps for about 3 hours. Really slow movement.
2) Asia/Australia session - Aud, Nzd and Jpy wakes up here.
3) Europe session - Eur, Gbp and Chf currencies begin to fluctuate.
4) American session - Most aggresive and liquid market which affect all currencies.

You need to keep an eye on openning of major stock exchanges of countries which currencies you plan to trade. London and Frankfurt stock exchanges are openning at the same time. Despite the difference of time zones in Germany and UK they agreed to open at once thus not giving english traders to sleep one extra hour.

The biggest movements takes place when New York stock exchange (NYSE) begin its operation. After approx. one hour European markets are closing, nevertheless Gbp and Eur are still under pressure till NYSE closes.

There is a strong connection between stock exchanges and currency rates. You could follow it for yourself. You can even predict currency rate relying on prices and trends of commodities and capital issues.

Big bounce of rate could appear exactly at the time of openning or closing of major stock exchange. Don't try to trade during this moments. All technical analysis could let you down because new trend could appear.