FX.co ★ Where to Sell and Buy the Euro: Simple Trading Tips for Beginner Traders on November 3

Trade Review and Trading Tips for the Euro

The test of 1.1220 occurred when the MACD indicator had just begun moving upward from the zero line, confirming that the entry point for buying the euro was appropriate. As a result, the pair rose by just 5 points.

The US manufacturing ISM index came in at 55.5, against a forecast of 54.5, and strong US economic data restored demand for the dollar. The indicator reflects orders, production, and employment at factories, so an increase supports expectations regarding the Fed's interest rate and strengthens the dollar. However, sentiment toward the US currency will remain the main driver for EUR/USD. Against the backdrop of the US elections, the euro has no domestic catalysts of its own today. No eurozone economic data is expected in the first half of the day, making it difficult for the single currency to gain independent momentum, as European data typically influence expectations regarding the ECB's interest rate. US voters are electing all members of the House of Representatives and approximately one-third of the Senate. Although the Democrats could gain 12 to 25 seats in the House, the outlook in the Senate remains more uncertain. As a result, uncertainty surrounding the election outcome could trigger volatility not only in the dollar but also in other currencies. Over the next few hours, the euro is likely to react primarily to US market sentiment rather than European news. Any sharp shift in the dollar or bond yields during the day could quickly change the market balance, so stable price action is unlikely.

Regarding the intraday strategy, the focus will be primarily on implementing Scenarios No. 1 and No. 2.

Buying Scenarios

Scenario No. 1: The euro can be bought today if the price reaches around 1.1201 (the green line on the chart), with a target at 1.1223. At 1.1223, the position will be closed, and a short position in the euro will also be opened, targeting a move of 30–35 points from the entry point. A rise in the euro today can only be expected following strong economic data. Important: Before buying, make sure that the MACD indicator is above the zero line and has just begun moving upward from it.

Scenario No. 2: The euro can also be bought today if the price tests 1.1184 twice consecutively while the MACD indicator is in the oversold zone. This would limit the pair's downward potential and trigger a reversal to the upside. The pair could then rise toward the opposite levels of 1.1201 and 1.1223.

Selling Scenarios

Scenario No. 1: The euro will be sold after the price reaches 1.1184 (the red line on the chart). The target will be 1.1157, where the position will be closed and a long position will be opened immediately in the opposite direction, targeting a rebound of 20–25 points from that level. Downward pressure on the pair is likely to return if economic data are weak. Important: Before selling, make sure that the MACD indicator is below the zero line and has just begun moving downward from it.

Scenario No. 2: The euro can also be sold today if the price tests 1.1201 twice consecutively while the MACD indicator is in the overbought zone. This would limit the pair's upward potential and trigger a reversal to the downside. The pair could then decline toward the next levels of 1.1184 and 1.1157.

What the Chart Shows:

• Thin green line – the entry price at which the trading instrument can be bought;
• Thick green line – the estimated price level at which Take Profit can be set or profits can be taken manually, as further gains above this level are unlikely;
• Thin red line – the entry price at which the trading instrument can be sold;
• Thick red line – the estimated price level at which Take Profit can be set or profits can be taken manually, as further declines below this level are unlikely;
• MACD indicator. When entering the market, it is important to consider the overbought and oversold zones.

Important. Beginner Forex traders should exercise considerable caution when making entry decisions. Before the release of major fundamental reports, it is best to stay out of the market to avoid sudden exchange rate fluctuations. If trading during news releases, always place stop-loss orders to minimize losses. Without stop-loss orders, the entire trading account can be lost very quickly, especially when trading large volumes without proper money management.

Remember that successful trading requires a clear trading plan, such as the one outlined above. Making spontaneous trading decisions based on current market conditions is a losing strategy for intraday traders from the outset.