EUR/USD: Simple trading tips for beginners on November 3rd
November 3, 2023 10:24 am
Analysis of Trades and Trading Tips for the European Currency
The test of the price at 1.0645 occurred when the MACD indicator was far enough from the zero mark, which clearly limited the pair’s bullish potential. For this reason, I did not buy the euro and I was right. By the middle of the U.S. session, the pair was under pressure, which led to a major sell-off, and this was in the absence of economic reports, so there was no reason behind it. In the first half of the day, traders will keep an eye on the eurozone unemployment report, but in my opinion, these figures will have little impact on the market. Most likely, the buyers will try to extend the upward movement ahead of the crucial U.S. labor market, but it will be limited. As for the intraday outlook, I will act more based on the implementation of scenarios #1 and #2 for selling.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0641 (green line on the chart), with the goal of reaching 1.0677. I recommend exiting the market at this mark 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 the previous uptrend; however, the main movement will likely occur in the second half of the day. 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 1.0624 while the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to a market reversal to the upside. Expect an increase to the opposite levels of 1.0641 and 1.0677.
Sell Signal
Scenario #1: You can sell the euro after it reaches the level of 1.0624 (red line on the chart). The target will be 1.0585, 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 1.0641 while the MACD indicator is in the overbought area. This will limit the pair’s bullish potential and lead to a market reversal downward. Expect a decrease to the opposite levels of 1.0624 and 1.0585.
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
Analysis of Trades and Trading Tips for the European Currency
The test of the price at 1.0645 occurred when the MACD indicator was far enough from the zero mark, which clearly limited the pair’s bullish potential. For this reason, I did not buy the euro and I was right. By the middle of the U.S. session, the pair was under pressure, which led to a major sell-off, and this was in the absence of economic reports, so there was no reason behind it. In the first half of the day, traders will keep an eye on the eurozone unemployment report, but in my opinion, these figures will have little impact on the market. Most likely, the buyers will try to extend the upward movement ahead of the crucial U.S. labor market, but it will be limited. As for the intraday outlook, I will act more based on the implementation of scenarios #1 and #2 for selling.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0641 (green line on the chart), with the goal of reaching 1.0677. I recommend exiting the market at this mark 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 the previous uptrend; however, the main movement will likely occur in the second half of the day. 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 1.0624 while the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to a market reversal to the upside. Expect an increase to the opposite levels of 1.0641 and 1.0677.
Sell Signal
Scenario #1: You can sell the euro after it reaches the level of 1.0624 (red line on the chart). The target will be 1.0585, 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 1.0641 while the MACD indicator is in the overbought area. This will limit the pair’s bullish potential and lead to a market reversal downward. Expect a decrease to the opposite levels of 1.0624 and 1.0585.
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
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