Forex Analysis & Reviews: 03.10.2023 - Analysis and trading tips...

03.10.2023 09:17 AM

Analysis and trading tips for EUR/USD on October 3

Analysis of transactions and tips for trading EUR/USD

Further decline became limited because the test of 1.0533 coincided with the sharp drop of the MACD line from zero.

Weak business activity data in the eurozone's manufacturing sector halted EUR/USD growth yesterday morning. Then, the pair continued to decline throughout the day due to similar reports from the US. Firm statements from Fed representatives regarding future monetary policy also resulted in a decline towards yearly lows. Considering today's economic calendar, euro will unlikely rise, especially with the speech of ECB board member Philip Lane. Traders should prepare for sell-offs.

For long positions:

Buy when euro hits 1.0499 (green line on the chart) and take profit at the price of 1.0540. Growth will unlikely occur, unless risk appetite returns.

Note that when buying, the MACD line should be above zero or rising from it. Euro can also be bought after two consecutive price tests of 1.0466, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0499 and 1.0540.

For short positions:

Sell when euro reaches 1.0466 (red line on the chart) and take profit at the price of 1.0424. Pressure may return at any moment, especially in the case of weak eurozone data and firm comments from ECB representatives.

Note that when selling, the MACD line should be below zero or dropping down from it. Euro can also be sold after two consecutive price tests of 1.0499, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0466 and 1.0424.

What's on the chart:

Thin green line - entry price at which you can buy EUR/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell EUR/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

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

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.

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