FX.co ★ Analytics and trading signals for beginners. How to trade EUR/USD on November 3? Getting ready for Tuesday session

Hourly chart of the EUR/USD pair

The EUR/USD pair reached the support level of 1.1623 at the beginning of the day, but failed to overcome it in general on Monday, November 2. As mentioned, it made another attempt to take this level in the afternoon, and failed once again. Thus, sellers showed their weakness on the first trading day of the week, and we warn novice traders that this weakness could be the beginning of a new upward trend. By and large, nothing strange happened today. The foreign exchange market often stands still on Mondays. And there was no major news or macroeconomic reports today. Therefore, it is understandable why traders are calm. However, from a technical point of view, the EUR/USD pair may change the downward trend to an upward trend in the near future. To do this, the quotes only need to settle above the descending channel, in which they are still moving. And today they have already tried to get out through the upper boundary, but they also failed at this attempt. Thus, neither buyers nor sellers had an advantage in the market on Monday.

The US and the European Union published business activity indices in manufacturing. These indicators turned out to be higher than forecasted, but the markets are now clearly absorbed by other, much more important topics. In general, there was no reaction to these reports. There was also no news on the topic of the US elections or the coronavirus in the European Union. Thus, in general, the overall negative background for the pair remains. The difficult epidemiological situation with COVID-2019 in the eurozone may continue to exert pressure on the euro/dollar pair. If only not for the elections that will take place tomorrow. It is almost impossible to predict the market behavior.

No important reports scheduled in the European Union on November 3. However, traders won't need it anyway. The presidential elections will finally be held in the United States, which all the media have been talking about for three months. Basically, it is impossible to say what the reaction of traders will be tomorrow and how the pair will move during the day. Therefore, we recommend that novice traders trade with extreme caution or not trade at all.

Possible scenarios for November 3:

1) Buy positions on the EUR/USD pair remain irrelevant at the moment, since the price continues to stay within the descending channel. Thus, novice traders should at least wait for the price to settle above the descending channel, afterwards it will be possible to count on an upward movement. The first target is the 1.1696 level.

2) Trading for a fall at this time remains relevant, although the pair has already gone down 190 points. However, as long as the price remains within the descending channel, you are advised to trade on a decline. The problem is that the channel is quite narrow and any correction will cause the quotes to leave it. However, there is no correction now, and the MACD indicator does not have enough time to discharge enough to form a strong sell signal. Tomorrow, the pair could be thrown from side to side. Therefore, you need to be prepared for anything.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.