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FX.co ★ EUR/USD: trading tips for beginners for European session on June 3

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Forex Analysis:::2024-06-03T08:16:55

EUR/USD: trading tips for beginners for European session on June 3

Overview of trading and tips on EUR/USD

The price test of 1.0871 occurred at a time when the MACD indicator had moved significantly above the zero mark, which limited the EUR/USD pair's potential to rise, even though the macro data that could support the euro turned out to be quite good. For this reason, I decided not to buy the single currency. Unfortunately, I did not get a second test of 1.0871 for the sell scenario. The Eurozone Consumer Price Index boosted the euro in the first half of the day, and a sharp decline in American incomes and expenses pushed the euro even higher. However, buyers were unable to hold onto the daily highs as traders started to take profit.

Today, the pair may continue the upward trend, but this will require very good reports on the German Manufacturing PMI, French Manufacturing PMI, and Eurozone Manufacturing PMI. Indicators showing strong activity would trigger new purchases of risky assets. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and 2.

EUR/USD: trading tips for beginners for European session on June 3

Buy signals

Scenario No 1. Today, you can buy the euro when the price reaches 1.0871 plotted by the green line on the chart, aiming for growth to the level of 1.0905. At the level of 1.0905, I plan to exit the market and also sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. You can count on the euro to rise today only after very good Eurozone data. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No 2. I am also going to buy the euro today in case of two consecutive tests of the price of 1.0845 at the time when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1.0871 and 1.0905.

Sell signals

Scenario No 1. I plan to sell the euro after EUR/USD reaches the level of 1.0845 plotted by the red line on the chart. The target will be the level of 1.0812, where I am going to exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the upward direction from the level). Pressure on EUR/USD will increase in case the price fails to consolidate near the daily high and if the Eurozone releases weak data. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No 2. I am also going to sell the euro today in case of two consecutive price tests of 1.0871 at the time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.0845 and 1.0812.

EUR/USD: trading tips for beginners for European session on June 3

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

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

The thin red line is the entry price at which you can sell the trading instrument.

The thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.

Analyst InstaForex
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