EUR/USD: Simple trading tips for novice traders for November 2nd (US session)
November 2, 2023 1:23 pm
The test of the price at 1.00606 occurred at a moment when the MACD indicator was just beginning its upward movement from the zero mark. This confirmed the correct entry point for buying the euro. As a result, the pair rose by more than 30 points. In the second half of the day, we can expect figures related to the number of initial jobless claims in the United States. Changes on the negative side will lead to further weakening of the American dollar, just as weak data on changes in labor productivity in the non-manufacturing sector and labor cost changes. Given the market’s bullish trend, it is best to act based on the implementation of scenarios #1 and #2 for buying.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0645 (green line on the chart), with a target of reaching 1.0704. At the point of 1.0704, I recommend exiting the market and also selling the euro in the opposite direction, with an expected movement of 30-35 points from the entry point. Today, the rise of the euro can be expected to continue the trend after weak US data and statements from the European Central Bank and the Federal Reserve. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting its rise from there.
Scenario #2: You can also buy the euro today in the case of two consecutive tests of the price at 1.0621 when the MACD indicator is in the oversold area. This will limit the downside potential of the pair and lead to a reversal of the market upward. You can expect a rise to the opposite levels of 1.0645 and 1.0704.
Sell Signal
Scenario #1: You can sell the euro after it reaches the level of 1.0621 (red line on the chart). The target will be the level of 1.0585, where I recommend exiting the market and buying the euro in the opposite direction immediately (with an expected movement of 20–25 points in the opposite direction from the level). Pressure on the pair will increase with good data, but a prolonged correction is unlikely. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting its decline from there.
Scenario #2: You can also sell the euro today in the case of two consecutive tests of the price at 1.0645 when the MACD indicator is in the overbought area. This will limit the upside potential of the pair and lead to a market reversal downward. You can expect a decline to the opposite levels of 1.0621 and 1.0585.
What’s 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 take profits, as further growth above 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 take 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 make decisions about market entry with extreme caution. It’s best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. 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 don’t use money management and trade with large volumes.
And remember that for successful trading, you need a clear trading plan, similar to the one I’ve presented above. Making impromptu trading decisions based on the current market situation is an initially losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
The test of the price at 1.00606 occurred at a moment when the MACD indicator was just beginning its upward movement from the zero mark. This confirmed the correct entry point for buying the euro. As a result, the pair rose by more than 30 points. In the second half of the day, we can expect figures related to the number of initial jobless claims in the United States. Changes on the negative side will lead to further weakening of the American dollar, just as weak data on changes in labor productivity in the non-manufacturing sector and labor cost changes. Given the market’s bullish trend, it is best to act based on the implementation of scenarios #1 and #2 for buying.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0645 (green line on the chart), with a target of reaching 1.0704. At the point of 1.0704, I recommend exiting the market and also selling the euro in the opposite direction, with an expected movement of 30-35 points from the entry point. Today, the rise of the euro can be expected to continue the trend after weak US data and statements from the European Central Bank and the Federal Reserve. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting its rise from there.
Scenario #2: You can also buy the euro today in the case of two consecutive tests of the price at 1.0621 when the MACD indicator is in the oversold area. This will limit the downside potential of the pair and lead to a reversal of the market upward. You can expect a rise to the opposite levels of 1.0645 and 1.0704.
Sell Signal
Scenario #1: You can sell the euro after it reaches the level of 1.0621 (red line on the chart). The target will be the level of 1.0585, where I recommend exiting the market and buying the euro in the opposite direction immediately (with an expected movement of 20–25 points in the opposite direction from the level). Pressure on the pair will increase with good data, but a prolonged correction is unlikely. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting its decline from there.
Scenario #2: You can also sell the euro today in the case of two consecutive tests of the price at 1.0645 when the MACD indicator is in the overbought area. This will limit the upside potential of the pair and lead to a market reversal downward. You can expect a decline to the opposite levels of 1.0621 and 1.0585.
What’s 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 take profits, as further growth above 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 take 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 make decisions about market entry with extreme caution. It’s best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. 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 don’t use money management and trade with large volumes.
And remember that for successful trading, you need a clear trading plan, similar to the one I’ve presented above. Making impromptu trading decisions based on the current market situation is an initially losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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