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04.11.202414:51 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginner Traders for November 4th (U.S. Session)

Relevancia 07:00 UTC--5

Review of Trades and Trading Tips for the Euro

The test of the 1.0911 price level occurred when the MACD indicator had already moved significantly above the zero mark, which limited the pair's upward potential. For this reason, I did not buy the euro. Recent manufacturing activity data in the Eurozone kept the euro in play, allowing buyers to continue the upward movement seen in the morning Asian session. In the second half of the day, the U.S. factory orders report is not the most important indicator, but there is no other significant data. For this reason, betting on continued growth in the pair is justified—especially a day before the U.S. elections, where the latest public opinion polls have made the situation even more uncertain, negatively affecting the dollar. As for intraday strategy, I will primarily rely on implementing scenarios #1 and #2.

Exchange Rates 04.11.2024 analysis

Buy Signal

Scenario #1: Today, buying the euro is possible when the price reaches around 1.0925 (green line on the chart) with the target of growth to the 1.0966 level. At 1.0966, I plan to exit the market and open a reverse sell position, aiming for a 30-35 point movement from the entry point. Expecting strong euro growth today in the continuation of the upward trend remains valid. Important! Before buying, ensure that the MACD indicator is above the zero line and is just starting to rise from it.

Scenario #2: I also plan to buy the euro today in case of two consecutive tests of the 1.0892 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Growth to the opposite levels of 1.0925 and 1.0966 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0892 level (red line on the chart). The target will be the 1.0855 level, where I will exit the market and immediately buy in the opposite direction (aiming for a 20-25 point movement in the opposite direction from the level). Pressure on the pair will return if buyers show weak activity near current highs. Important! Before selling, ensure that the MACD indicator is below the zero line and just starting to decline from it.

Scenario #2: I also plan to sell the euro today in case of two consecutive tests of the 1.0925 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. A decline to the opposite levels of 1.0892 and 1.0855 can be expected.

Exchange Rates 04.11.2024 analysis

Chart Notes:

  • Thin green line – entry price for buying the trading instrument.
  • Thick green line – anticipated price for placing Take Profit or manually taking profit, as further growth above this level is unlikely.
  • Thin red line – entry price for selling the trading instrument.
  • Thick red line – anticipated price for placing Take Profit or manually taking profit, as further decline below this level is unlikely.
  • MACD Indicator: When entering the market, it is important to use overbought and oversold areas.

Important: Beginner Forex traders should be very cautious when making entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid getting caught in sudden price movements. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you could quickly lose your entire deposit, especially if you trade in large volumes without proper money management.

Remember: To trade successfully, you need a clear trading plan, like the one provided above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for intraday traders.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2024
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