Hourly chart of the EUR/USD pair
The EUR/USD pair began to correct last night, after it sharply fell. Therefore, novice traders can monitor new sell signals from the MACD indicator during the day. Unfortunately, it has not yet discharged to the zero mark, therefore, if the price falls in the next couple of hours, the indicator will be late in reacting to it. Ideally, a new sell signal should appear in five hours. However, this is the foreign exchange market, there are no "on demand" signals. In general, the EUR/USD pair continues to trade clearly within the 1.1700-1.1900 horizontal channel. Yesterday a rebound was made from the upper border of this channel, so we expect the downward movement to return with the target at the lower border of the horizontal channel. As before, buyers will only be able to enter the game above the 1.1903 level.
No major events and reports scheduled in the United States and the EU for today. However, there were a few important reports from yesterday; nevertheless, the EUR/USD pair was actively traded. Therefore, it is possible that traders will find reasons for trading today. Recall that throughout the previous week, the quotes were in a very narrow sideways range just below the upper border of the horizontal channel of 1.1700-1.1900. So now traders are kind of paying a favor. On the other hand, trading can be quite active today, but what exactly should novice traders pay attention to? By and large, there is not a single topic that could keep traders in suspense. The US elections were held and after that we only had Donald Trump's threats to reconsider or cancel the voting results in a particular state. So far, all of Trump's attempts have been unsuccessful. Everyone has forgotten about the coronavirus in America, and in the European Union - lockdown, at least until the beginning of December. This factor may negatively affect the euro in the next month or two, since the European economy will contract during the lockdown, while the US will not. Therefore, we still believe that the pair has more chances to form a new downward trend. At the same time, we do not know what will happen in the United States when Joe Biden takes over as president. He may also place the country in a nationwide quarantine.
Possible scenarios for November 24:
1) Long positions are currently irrelevant. Buyers tried to take the pair above the 1.1903 level, but they did not succeed, which means that it is not recommended to buy the euro right now. As before, in regards to opening long positions, you are advised to wait for an upward trend to appear or until the downward trend ends.
2) Trading for a fall at this time is relevant, since the trend has changed to a downward one a few days ago. We advise you to wait for a new sell signal from the MACD indicator and trade down while aiming for the support level of 1.1791. The only thing - it is better to wait for a good discharge of the indicator, to a zero level or so.
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.
The material has been provided by InstaForex Company - www.instaforex.com