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25.11.202416:23 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginner Traders for November 25th (U.S. Session)

Relevancia 07:00 2024-11-26 UTC--5

Analysis of Trades and Tips for Trading the Euro

The test of the 1.0473 price level occurred as the MACD indicator began to decline from the signal line, confirming the validity of a sell signal for the euro. Consequently, the pair fell by 25 points but failed to reach the target level of 1.0435.

Earlier today, the euro depreciated sharply against the dollar and other major currencies. Data released by Germany's IFO Institute disappointed markets, with indices coming in below analysts' expectations. Concerns over a potential slowdown in eurozone economic growth triggered a sell-off of the euro. Additionally, expectations of further aggressive monetary easing by the European Central Bank intensified pressure on the pair, worsening the euro's decline.

In the second half of the day, trading activity is likely to decrease due to a lack of significant U.S. economic data. Although low trading volume and volatility are anticipated, renewed pressure on the euro remains possible, as the pair continues to trade within a downward channel. For intraday strategies, I will rely on the implementation of Scenarios #1 and #2.

Exchange Rates 25.11.2024 analysis

Buy Signal

Scenario #1: Today, buying the euro is feasible at around 1.0497 (indicated by the green line on the chart), with a target of 1.0532. At this level, I plan to exit the market and also open a short position, anticipating a 30-35 point price movement downward. A significant rally in the euro is unlikely today.

Important: Before buying, ensure the MACD indicator is above the signal line and beginning to rise.

Scenario #2: Buying the euro is also viable following two consecutive tests of the 1.0473 level, provided the MACD indicator signals oversold conditions. This setup would likely limit further declines and prompt an upward market reversal, targeting levels of 1.0497 and 1.0532.

Sell Signal

Scenario #1: Selling the euro is appropriate after a test of the 1.0473 level (red line on the chart). The target is 1.0435, where I plan to exit and immediately buy in the opposite direction, anticipating a reversal of 20-25 points. The pair is expected to remain under pressure as the downward trend persists.

Important: Before selling, ensure the MACD indicator is below the signal line and beginning to decline.

Scenario #2: Selling is also justified following two consecutive tests of the 1.0497 level, with the MACD indicator signaling overbought conditions. This would likely cap further upward potential and lead to a downward market reversal, targeting levels of 1.0473 and 1.0435.

Exchange Rates 25.11.2024 analysis

Chart Notes:

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: Estimated level for setting Take Profit or manually securing profits, as further growth beyond this level is unlikely.
  • Thin red line: Entry price for selling the trading instrument.
  • Thick red line: Estimated level for setting Take Profit or manually securing profits, as further declines below this level are unlikely.
  • MACD indicator: Evaluate overbought and oversold zones before entering the market.

Important Note:

Beginner traders should approach market entry decisions with caution. It is advisable to avoid trading during the release of major fundamental reports to minimize exposure to sudden price swings. If trading during news events, always use stop-loss orders to mitigate potential losses. Failure to use stop-loss orders, particularly when trading large volumes, could result in significant losses or even the depletion of your trading account.

Successful trading requires a clear and structured plan, as demonstrated above. Avoid making impulsive decisions based on short-term market conditions, as this approach is typically unprofitable 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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