FX.co ★ Analysis and trading tips for EUR/USD on November 3

Analysis of transactions in the EUR / USD pair

The test of 0.9898 occurred at the time when the MACD line was just starting to move above zero, which was a good signal to buy. This led to the pair increasing by around 10 pips. In the afternoon, a test of 0.9946 led to a sell signal, resulting in a price decrease of over 50 pips.

The Fed's decision on its interest rate initially led to the rise of EUR/USD, however, Jerome Powell's statements returned the pressure on the pair, which resulted in a major sell-off and the continuation of the bear market. The Fed chief said he is not going to deviate from his goals, so he will continue to raise interest rates, which keeps dollar at a fairly high level.

Today, an employment report is coming out from the Eurozone, but it is not of great interest. ECB President Christine Lagarde is also speaking, and it is likely that in her speech, she will talk about the current situation in the economy. This may bring further pressure in the pair. In the afternoon, there is data on US jobless claims, followed by the reports on foreign trade balance and business activity in the services sector from ISM. Good indicators will strengthen the position of dollar and lead to another serious downward movement of EUR/USD to yearly lows.

For long positions:

Buy euro when the quote reaches 0.9845 (green line on the chart) and take profit at the price of 0.9899. Growth will occur if data from the Euro area exceed expectations. But take note that when buying, the MACD line should be above zero or is starting to rise from it.

Euro can also be bought at 0.9807, however, the MACD line should be in the oversold area as only by that will the market reverse to 0.9845 and 0.9899.

For short positions:

Sell euro when the quote reaches 0.9807 (red line on the chart) and take profit at the price of 0.9753. Pressure will return if the Euro area reports weak economic data. But take note that when selling, the MACD line should be below zero or is starting to move down from it.

Euro can also be sold at 0.9845, however, the MACD line should be in the overbought area as only by that will the market reverse to 0.9807 and 0.9753.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.