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

Trading 02 Nov 2020 Commentaire »

Hourly chart of the EUR/USD pair

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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.

The material has been provided by InstaForex Company - www.instaforex.com

U.S. Construction Spending Rises Less Than Expected In September

Trading 02 Nov 2020 Commentaire »

Construction spending in the U.S. increased by less than expected in the month of September, the Commerce Department revealed in a report released on Monday.

The report said construction spending rose by 0.3 percent to an annual rate of $1.414 trillion in September after climbing by 0.8 percent to $1.410 trillion in August. Economists had expected construction spending to jump by 1.0 percent.

The weaker than expected growth in construction spending came as an increase in spending on private construction was partly offset by a drop in spending on public construction.

The Commerce Department said spending on private construction climbed by 0.9 percent to an annual rate of $1.075 trillion, with a spike in spending on residential construction more than offsetting a slump in spending on non-residential construction.

Meanwhile, the report said spending on public construction tumble by 1.7 percent to an annual rate of $339.1 billion amid a steep drop in spending on highway construction.


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Manufacturing Index Climbs Much More Than Expected In October

Trading 02 Nov 2020 Commentaire »

Growth in U.S. manufacturing activity accelerated by much more than expected in the month of October, according to a report released by the Institute For Supply Management on Monday.

The ISM said its purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.

"Manufacturing performed well for the third straight month, with demand, consumption and inputs registering growth indicative of a normal expansion cycle," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

He added, "While certain industry sectors are experiencing difficulties that will continue in the near term, the overall manufacturing community continues to exceed expectations."

The bigger than expected increase by the headline index came as the new orders index jumped to 67.9 in October from 60.2 in September and the production index rose 63.0 from 61.0.

The employment index also climbed to 53.2 in October from 49.6 in September, indicating job growth in the manufacturing sector.

The report said the prices index also increased to 65.5 in October from 62.8 in September, pointing to a continued increase in prices.

On Wednesday, the ISM is scheduled to release a separate report on activity In the service sector in the month of October.


The material has been provided by InstaForex Company - www.instaforex.com

*ISM U.S. Manufacturing Index Climbs To 59.3 In October

Trading 02 Nov 2020 Commentaire »

ISM U.S. Manufacturing Index Climbs To 59.3 In October


The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Construction Spending Rises 0.3% In September

Trading 02 Nov 2020 Commentaire »

U.S. Construction Spending Rises 0.3% In September


The material has been provided by InstaForex Company - www.instaforex.com

German GDP To Fall In Q4 As Economy Faces Second Wave Of Infection: DIW

Trading 02 Nov 2020 Commentaire »

The German economy is set to contract in the fourth quarter as the government decided to restrict activity to curb the second wave of infections, the DIW institute said Monday.

Gross domestic product is forecast to shrink 1 percent in the fourth quarter after rebounding 8.2 percent in the third quarter.

Although industry is likely to be less affected than in the first half of the year, consumer oriented service sectors such as the hospitality industry will be most affected, the institute said.

According to institute, an additional 400,000 employees are expected to be put on short-time work.

If Germany succeeds in limiting the spread of Covid-19, the economy can grow again in the coming year. Otherwise, the economic damage could be significantly greater.


The material has been provided by InstaForex Company - www.instaforex.com

Euro Advances After Strong Eurozone PMI Data

Trading 02 Nov 2020 Commentaire »

The euro firmed against its most major rivals in the European session on Monday, as strong manufacturing data from Eurozone triggered hopes of an economic rebound from the coronavirus pandemic.

Final survey results from IHS Markit showed that the euro area manufacturing sector gained further strength in October driven by acceleration in production and new orders.

The manufacturing Purchasing Managers' Index rose to 54.8 in October from 53.7 in September. The flash score was 54.4. A reading above 50 indicates expansion in the sector.

Sentiment was further underpinned by better-than-expected China data.

The manufacturing sector in China continued to expand in October, and at a faster rate, the latest survey from Caixin revealed with a manufacturing PMI score of 53.6, up from 53.0 in September.

The euro rose to 122.15 against the yen and 1.0689 against the franc, from its early low of 121.70 and a 3-1/2-month low of 1.0667, respectively. The currency may possibly challenge resistance around 124.00 against the yen and 1.10 against the franc.

After falling to a 5-week low of 1.1622 at 3:30 am ET, the euro bounced off to 1.1651 against the greenback. The euro is poised to locate resistance around the 1.20 level.

In contrast, the euro eased off from an early high of 0.9049 against the pound, with the pair trading at 0.9017. Should the euro slides further, 0.88 is possibly seen as its next support level.

Final survey results from IHS Markit showed that the UK manufacturing sector continued to expand in October but the upturn showed signs of losing impetus as the initial boost to growth from the economy reopening faded and job losses accelerated.

The IHS Markit/Chartered Institute of Procurement & Supply factory Purchasing Managers' Index fell to 53.7 in October from 54.1 in the previous month. The flash score was 53.3. A score above 50 indicates expansion.

The euro pulled back to 1.6550 against the aussie and 1.7568 versus the kiwi, from its early highs of 1.6641 and 1.7663, respectively. The euro is seen finding support around 1.60 against the aussie and 1.70 versus the kiwi.

The EUR/CAD pair hit 1.5486, setting a 2-week low. The next possible support for the currency is seen around the 1.52 level.

Looking ahead, U.S. ISM manufacturing PMI for October and construction spending for September are set for release in the New York session.


The material has been provided by InstaForex Company - www.instaforex.com

*German GDP To Fall 1% In Q4: DIW

Trading 02 Nov 2020 Commentaire »

German GDP To Fall 1% In Q4: DIW


The material has been provided by InstaForex Company - www.instaforex.com

November 2, 2020 : EUR/USD daily technical review and trade recommendations.

Trading 02 Nov 2020 Commentaire »

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Threeweeks ago, temporary breakout above 1.1750 was demonstrated within the depicted ascending channel. This indicated high probability of bullish continuation towards 1.1880. However, downside pressure pushed the EUR/USD pair towards 1.1700 where significant BUYING Pressure Existed. This was followed by another quick upside movement towards 1.1880-1.1900.

The price zone around 1.1880-1.1900 constituted a KEY Price-Zone as it corresponded to the backside of the depicted broken ascending channel where significant bearish pressure and a reversal Head & Shoulders pattern were demonstrated.

Recently, Two opportunities for SELL Entries were offered upon the recent upside movement towards 1.1880-1.1900. Suggested SELLING positions are already running in profits.

Early signs of bullish reversal are being demonstrated around the current price levels of 1.1630. Exit level should be lowered to 1.1720 to secure more profits.

Trade Recommendations :-Currently, the price zone of 1.1740-1.1780 stands as a significant Resistance-Zone to be watched during any upcoming upside pullback for a valid SELL Position.

Initial bearish target would be located around 1.1720 and 1.1690.

The material has been provided by InstaForex Company - www.instaforex.com

Greece Manufacturing Sector Contracts In October

Trading 02 Nov 2020 Commentaire »

Greece's manufacturing activity deteriorated in October, survey results from IHS Markit showed on Monday.

The manufacturing Purchasing Managers' Index decreased to 48.7 in October from 50.0 in September. Any reading below 50.0 indicates contraction in the sector.

Output declined for the seventh time in eight months in October amid a fall in new orders.

Firms expectation for the next 12-months improved and they hope for an end to the Covid-19 pandemic.

On the price front, the cost burden increased at a solid rate and the rate of decline in selling prices was overall strong.

Firms reduced their workforce for the first time in three months and backlogs of work declined sharply and at the steepest pace for five months.

"Although positive expectations were largely driven by hopes of an end to the pandemic, our latest forecast for annual industrial production foresees a modest rise of 2.1 percent in 2021," Sian Jones, economist at IHS Markit, said.

"As the sector is expected to contract by 4.6% throughout 2020, the recovery to pre-pandemic levels may be drawn out," Jones added.


The material has been provided by InstaForex Company - www.instaforex.com