EUR/USD: Simple trading tips for beginners on November 2nd
November 2, 2023 10:25 amVideo
Latest News
- Outlook for EUR/USD on April 12. New ECB meeting April 12, 2024
- The market is disappointed and softening expectations for the FOMC rate April 12, 2024
- Christine Lagarde: inflation is easing April 12, 2024
- ECB threw a lifeline to the euro April 11, 2024
- Technical Analysis – ETHUSD finds support at 50-day SMA April 11, 2024
- Trading Signals for GOLD (XAU/USD) for April 11-15, 2024: buy above $2,345 (6/8 Murray – symmetrical triangle) April 11, 2024
- EUR/USD: trading scenarios on April 11, 2024 April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 (US session) April 11, 2024
- Analysis and trading tips for GBP/USD on April 11 (US session) April 11, 2024
- Analysis and trading tips for EUR/USD on April 11 (US session) April 11, 2024
- Technical Analysis – USDCAD surges to new almost 5-month high April 11, 2024
- Technical Analysis – EURGBP’s double bottom still waits for confirmation April 11, 2024
- Technical Analysis – US 30 index slides below 50-day SMA April 11, 2024
- Video market update for April 11, 2024 April 11, 2024
- EUR/USD. April 11th. Fed minutes: inflation concerns persist April 11, 2024
- GBP/USD. April 11th. The US inflation report shocked the bulls April 11, 2024
- Technical Analysis – USDCHF unlocks 6-month high April 11, 2024
- Overview of the GBP/USD pair on April 11, 2024 April 11, 2024
- Overview of the EUR/USD pair. April 11th. The market couldn’t hold up after the inflation report April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 April 11, 2024
Analysis of Trades and Trading Tips for the European Currency
The test of the price at 1.0542 occurred when the MACD indicator had just started to move down from the zero mark, which served as a confirmation of an entry point for short positions. As a result, the pair fell by 20 pips. The Federal Reserve’s decision following a weak labor market report exerted pressure on the US dollar and strengthened the euro. The eurozone is set to release Manufacturing PMIs, and a contraction is likely to exert pressure on the euro and push EUR/USD downwards. It is also important to analyze the unemployment rate report for Germany and listen to the speech of European Central Bank Executive Board member Philip Lane, whose remarks could further harm the euro’s growth prospects of the Euro’s upward movement. If none of this occurs, the pair will likely extend its upward movement. As for the intraday outlook, I will act more based on the implementation of scenario #1.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0606 (green line on the chart), with the goal of reaching 1.0658. I recommend exiting the market at 1.0658 and selling the euro in the opposite direction, targeting a 30-35 point move from the entry point. Euro growth can be expected in continuation of yesterday’s uptrend following the Fed’s decision to leave interest rates unchanged. Important! Before buying, make sure that the MACD indicator is above the zero level and has just started to rise from it.
Scenario #2: You can also buy the euro today if there are two consecutive tests of the price at 1.0585 while the MACD indicator is in the oversold zone. This will limit the downward potential of the pair and lead to a market reversal upward. Expect an increase to the opposite levels of 1.0606 and 1.0658.
Sell Signal
Scenario #1: You can sell the euro after it reaches the level of 1.0585 (red line on the chart). The target will be 1.0533, where I recommend exiting the market and buying the euro immediately in the opposite direction (aiming for a 20–25 point move in the opposite direction from the level). Pressure on the pair will increase in case the pair fails to break above the daily high. Important! Before selling, make sure that the MACD indicator is below the zero level and has just started to decrease from it.
Scenario #2: You can also sell the euro today if there are two consecutive tests of the price at 1.0606 while the MACD indicator is in the overbought zone. This will limit the upward potential of the pair and lead to a market reversal downward. Expect a decrease to the opposite levels of 1.0585 and 1.0533.
On the chart:
Thin green line – entry price for buying the trading instrument.
Thick green line – the expected price where you can set Take Profit or independently fix profits, as further growth beyond this level is unlikely.
Thin red line – entry price for selling the trading instrument.
Thick red line – the expected price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, it is important to consider the overbought and oversold zones.
Important. For novice traders in the forex market, it is essential to be very cautious when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without placing stop orders, you can quickly lose your entire deposit, especially if you are not using proper risk management and are trading with large volumes.
And remember that for successful trading, you need to have a clear trading plan, similar to the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: