InstaForex

November 2, 2021

How to trade EUR/USD on November 2? Simple tips for beginners. The pair calmed down after the "storm" at the end of last week

The EUR/USD pair passed as much as 50 points from low to high on Monday, which is already more usual for this pair. Thus, everything returns to normal. The over-volatile movements on Thursday and Friday of the last week were left behind, and the EUR/USD pair is now returning to its usual trading mode. Unfortunately, it is far from the most pleasant for traders. There is still no trend on the 30-minute timeframe, and even a trend line cannot be formed at this time. Moreover, a new horizontal channel cannot be built either. Therefore, now - neither flat nor trend. Let us remind novice traders that in recent weeks the pair has been trading alternately in three horizontal channels at once, but the movement of the last days is generally very difficult to attribute to any specific pattern. We assume that the last two trading days of the past week could have unsettled the currency pair. Therefore, now we need to wait a little so that the situation calms down, and the price can show how it is going to move in the future.


Monday's move was not the worst in reality on the 5-minute timeframe. Yes, the volatility was low, but there was a trend movement for most of the day. If the trading signal was formed not at the very end of the day, but somewhere at the beginning, then it would be much more profitable. However, the only buy signal was formed in the middle of the US trading session and after the only macroeconomic report of the day was published. The ISM Manufacturing PMI, which is generally considered quite an important report, exceeded analysts' forecasts, but instead of a fall in the pair (a rise in the dollar), we saw a resumption of the upward movement (a rise in the euro). Thus, this report had no impact. And the buy signal could be ignored, since at that time it was already clear that novice traders would not wait for any strong movement. Even if newbies opened long positions on this signal, then after an hour and a half they should have been closed in any profit, since the movement faded altogether, and the price began to move exactly along the level of 1.1585.


How to trade on Tuesday:


The volatility fell to its usual values and at this time there is no trend or horizontal channel on the 30-minute timeframe. Therefore, the current movement is generally very difficult to describe in words. Thus, it is still not very convenient to trade on the 30-minute TF, and we still do not recommend tracking signals from the MACD indicator. We advise you to wait for the formation of a trend line or trend channel. The key levels for November 2 on the 5-minute timeframe are 1.1496, 1.1535, 1.1585, 1.1617 - 1.1622. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15 points. At the 5M TF, the target can be the nearest level if it is not too close or too far away. If it is located - then you should act according to the situation or work according to Take Profit. On Tuesday, novice traders can turn their attention to the report on business activity in the EU manufacturing for October. However, we remind you that earlier the markets ignored much more important data from the EU on inflation and GDP.