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EUR/USD Forecast on December 3, 2025

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On Tuesday, the EUR/USD pair rebounded from the support level of 1.1594–1.1607, turned in favor of the European currency, and rose to the resistance level of 1.1645–1.1656. A rebound from this zone will work in favor of the U.S. dollar and lead to a new decline toward the 1.1594–1.1607 level. A consolidation of the pair above 1.1645–1.1656 will increase the likelihood of continued growth toward the next 38.2% retracement level at 1.1718.

The wave situation on the hourly chart remains simple and clear. The last completed downward wave did not break the low of the previous wave, and the last upward wave has not yet broken the previous peak. Thus, the trend still remains bearish for now. Bullish traders have gone on the offensive, but their efforts are still insufficient to form a trend. For the bearish trend to be considered over, the pair must rise above 1.1656.

On Tuesday, the information background was not dull or insignificant. Donald Trump announced that he had chosen a new Fed Chair, but did not disclose the name. In the European Union, the inflation report for November was published, showing that prices rose slightly more than expected—by 2.2% y/y. The unemployment rate was also released, which for October came in slightly higher than market expectations at 6.4%. However, I can say with confidence that none of these events provoked any reaction among traders. While Trump's statement is understandable, the European reports cannot be considered secondary. Nevertheless, traders ignored them completely. Therefore, I believe the market is focused this week on U.S. economic data, since next week will bring the final FOMC meeting of the year. Ahead of this meeting, the U.S. dollar is slowly declining, as the Federal Reserve is highly likely to cut the interest rate by another 0.25%. And U.S. economic data will directly affect the Fed's decision.

On the 4-hour chart, the pair once again returned to the 23.6% retracement level at 1.1649. A third rebound from this level will again work in favor of the U.S. dollar and lead to a decline toward the 38.2% Fibonacci level at 1.1538. A consolidation above the resistance level of 1.1649–1.1680 will increase the likelihood of continued growth toward the next 0.0% retracement level at 1.1829. No forming divergences are observed on any indicator today.

Commitments of Traders (COT) Report:

During the last reporting week, professional traders closed 12,897 long positions and 2,857 short positions. COT reports have resumed after the shutdown, but for now the published data is still outdated—October data. The sentiment of the "Non-commercial" group remains bullish thanks to Donald Trump and continues to strengthen over time. The total number of long positions held by speculators now stands at 243,000, while short positions amount to 135,000.

For thirty-three consecutive weeks, major players have been closing short positions and increasing long positions. Donald Trump's policies remain the most significant factor for traders, as they may cause numerous problems with long-term and structural implications for the U.S. Despite the signing of several important trade agreements, many key economic indicators are declining, and the dollar is losing its status as a global reserve currency.

News Calendar for the U.S. and the European Union:

• EU – Germany Services PMI (08:55 UTC).
• EU – Services PMI (09:00 UTC).
• EU – Producer Price Index (10:00 UTC).
• U.S. – ADP Employment Change (13:15 UTC).
• U.S. – Industrial Production (14:15 UTC).
• U.S. – ISM Services PMI (15:00 UTC).

On December 3, the economic calendar contains six entries, of which only the U.S. reports are of real interest. The impact of the news background on market sentiment on Wednesday may be moderate and primarily in the second half of the day.

EUR/USD Forecast and Trader Recommendations:

Sales of the pair are possible upon a rebound from the 1.1645–1.1656 level on the hourly chart, targeting 1.1594–1.1607. Buy positions could have been opened yesterday upon a rebound from the 1.1594–1.1607 level with a target of 1.1645–1.1656. The target has been reached. New buy positions may be opened upon a close above the 1.1645–1.1656 level with a target of 1.1718.

Fibonacci grids are built using 1.1392–1.1919 on the hourly chart and 1.1066–1.1829 on the 4-hour chart.

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GBP/USD Forecast on December 3, 2025

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On the hourly chart, the GBP/USD pair has been trading horizontally over the past few days between price levels 1.3186 and 1.3270. Traders often ignore chart levels, and the pair remains in a sideways range. Yesterday, a rebound from the 38.2% retracement level at 1.3186 occurred, leading to a reversal in favor of the pound and a rise to the 50.0% Fibonacci level at 1.3240. Today, a rebound from this level would work in favor of the dollar and lead to a new decline toward 1.3186. A consolidation of the pair above 1.3240 would allow for continued growth toward the 61.8% retracement level at 1.3294.

The wave structure has turned "bullish." The last completed downward wave did not break the previous low, while the new upward wave broke the previous peak. Thus, the trend has officially become bullish. The news background for the pound has been weak in recent weeks, but the bears have fully priced it in, and the U.S. news background is also far from ideal.

There was no news background for either the pound or the dollar on Tuesday. The euro, meanwhile, had two interesting reports, but the market ignored them. As a result, the pound and dollar lost nothing. The overall upward movement continues ahead of the last FOMC meeting of 2025, but traders are still cautious, as there is still no up-to-date labor market or unemployment data in the U.S. As a reminder, due to the "shutdown," the Bureau of Statistics stopped working for a month and a half and still hasn't collected data for October and November. Therefore, there is no current information on labor market conditions. Without it, the Federal Reserve will again have to make its monetary policy decision essentially blind. The only report that may give the FOMC at least some guidance is the ADP report, which becomes available today. According to forecasts, the number of new jobs in November will be 5,000—much lower than October's figure of 42,000, which is already considered extremely low. Thus, the market has every reason to continue selling the dollar.

On the 4-hour chart, the pair consolidated above the downward trend channel and above the 1.3118–1.3140 level. Therefore, the upward movement may continue toward the 1.3339 level. A "bearish" divergence formed on the CCI indicator, which allowed for expectations of some decline, but that decline may already be over. No new divergences are forming today.

Commitments of Traders (COT) Report:

The sentiment of the "Non-commercial" category became less bullish during the last reporting week, but that reporting week was a month and a half ago—October 14. The number of long positions held by speculators decreased by 14,896, and the number of short positions decreased by 7,743. The gap between long and short positions now stands at approximately 79,000 vs. 91,000. However, these figures are as of mid-October.

In my view, the pound still appears less "risky" than the dollar. In the short term, the U.S. currency is in demand, but I consider this a temporary phenomenon. Donald Trump's policies have led to a sharp decline in the labor market, and the Fed is forced to ease monetary policy to stop rising unemployment and stimulate job creation. Thus, if the Bank of England may cut rates one more time, the FOMC could continue easing throughout 2026. The dollar weakened significantly in 2025, and 2026 may be no better for it.

News calendar for the U.S. and the UK:

• United Kingdom – Services PMI (09:30 UTC).
• United States – ADP Employment Change (13:15 UTC).
• United States – Industrial Production (14:15 UTC).
• United States – ISM Services PMI (15:00 UTC).

On December 3, the economic calendar contains four entries, of which only the U.S. reports are of significant interest. The influence of the informational background on market sentiment will be present on Wednesday, but only in the second half of the day.

GBP/USD Forecast and Trader Recommendations:

I would not consider selling the pair today, as there is no clear rebound level. Buy positions could be opened upon a rebound on the hourly chart from the 1.3186–1.3214 level with a target of 1.3294. These trades can be kept open today.

Fibonacci grids are constructed using 1.3470–1.3010 on the hourly chart and 1.3431–1.2104 on the 4-hour chart.

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

Forex forecast 03/12/2025: EUR/USD, USD/JPY, GBP/USD, USDX, Gold and Bitcoin

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We introduce you to the daily updated section of Forex analytics where you will find reviews from forex experts, up-to-date monitoring of financial information as well as online forecasts of exchange rates of the US dollar, euro, ruble, bitcoin, and other currencies for today, tomorrow and this trading week.

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Important:

The begginers in forex trading 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 market fluctuations due to increased volatility. If you decide to trade during the news release, 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. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

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The Global Economy Is Coping with Trump's Tariffs

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According to the OECD, the global economy is coping with Donald Trump's trade tariffs better than expected, as activity is supported by significant investment in artificial intelligence and by supportive fiscal and monetary policy.

Although the trade restrictions introduced by the Trump administration have certainly had a negative impact on specific sectors and countries, global economic growth has proven more resilient than many economists had forecast. One of the key reasons for this resilience is technological progress, especially in the field of artificial intelligence. Large-scale AI investment—both from the private sector and from governments—has helped boost productivity and efficiency across various industries. The automation of processes, optimization of supply chains, and development of new AI-based products and services have softened some of the negative consequences of the trade wars.

In addition, governments in many countries have taken measures to stimulate their economies in response to trade tensions. Tax cuts, increased public spending, and low interest rates have helped maintain consumer demand and investment activity.

However, it is important to note that the resilience of the global economy does not mean that trade tariffs have no negative consequences. They still disrupt trade flows, raise prices for consumers, and create uncertainty for businesses, which can restrain long-term investment.

The Paris-based organization has raised its growth forecasts for the U.S. and the eurozone for this year and next, and has also made slight upward adjustments for other major economies in its latest outlook. Nevertheless, global growth is still projected to slow from 3.2% in 2025 to 2.9% in 2026, as the full impact of the tariffs on trade has yet to be felt.

"The global economy has shown resilience this year despite concerns about a sharp slowdown in growth due to rising trade barriers and significant uncertainty," said Secretary-General Mathias Cormann. "However, global trade growth slowed in the second quarter of this year, and we expect that the increase in tariffs will gradually lead to higher prices, which will reduce household consumption growth and business investment."

It is worth recalling that as recently as June, the OECD warned that U.S. economic growth would slow to 1.6% this year, but in September it raised this figure to 1.8%, and now it is forecasting 2%. However, combined with concerns about rapid changes in trade measures, the OECD said the outlook is fragile and its forecasts are subject to significant risks.

As for the current technical picture of EUR/USD, buyers now need to think about how to take the 1.1650 level. Only this will allow them to target a test of 1.1680. From there, it is possible to climb to 1.1715, but doing so without support from major players will be quite challenging. The most distant target would be the 1.1730 high. In the event of a decline in the instrument, I expect any serious action from major buyers only around 1.1625. If no one is there, it would be better to wait for a renewal of the 1.1590 low or to open long positions from 1.1560.

As for the current technical picture of GBP/USD, pound buyers need to take the nearest resistance at 1.3250. Only this will allow them to target 1.3270, above which breaking through will be rather difficult. The most distant target will be the 1.3300 level. In the event of a decline, the bears will attempt to take control at 1.3225. If they succeed, a breakout of this range will deal a serious blow to the bulls' positions and push GBP/USD down to the 1.3203 low, with the prospect of reaching 1.3170.

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The ECB Is Not Obliged to React

.Yesterday's inflation data for the eurozone prompted a series of comments from European Central Bank officials. However, in the currency market itself, the released report was largely ignored."The European Central Bank is not obliged to react to small deviations from the 2% inflation target. It should keep its powder dry so it can respond when there is a real need to change policy," said Governing Council member Martin Kocher in an interview.

As a reminder, according to yesterday's data, consumer prices in the eurozone rose by 2.2% in November compared to the same period last year, higher than the 2.1% average level in the previous month and slightly above the median economist forecast. Core inflation, which excludes volatile food and energy prices, remained unchanged at 2.4%.

After the sharp surge following the pandemic, inflation in the euro area's 20 countries has remained near the 2% target for nine months, while underlying pressure is also easing, though more slowly.

"We cannot and should not engage in micromanagement through monetary policy," Kocher said. "We are seeing very high valuations in financial markets, especially in the U.S., where AI-related stocks are rising. Therefore, ensuring financial stability is important." Kocher also noted that European banks are very stable, but problems could spill over from the U.S., which calls for a certain level of caution.

Kocher emphasized that the ECB must remain flexible and avoid rushing into further rate cuts despite signs of favorable inflation. Premature action, in his view, could weaken the bank's position and limit its ability to respond if new economic shocks arise.

In conclusion, Kocher called for vigilance and caution in monetary policy so that the ECB can effectively respond to any future challenges. He stressed that maintaining financial stability is a key priority and that the ECB must be ready to take necessary measures to protect the economy from potential risks.

It is obvious that statements of this kind clearly indicate that during the December meeting, the European regulator is unlikely to introduce any changes to its policy agenda.

Regarding the current technical picture for EUR/USD, buyers now need to figure out how to reclaim the 1.1650 level. Only this will allow them to target a test of 1.1680. From there, the price could rise to 1.1715, though doing so without support from major market players will be quite difficult. The furthest target is 1.1730. If the instrument declines, only around 1.1625 do I expect any serious action from major buyers. If no support appears there, it would be best to wait for a renewal of the 1.1590 low or consider opening long positions from 1.1560.

Regarding the current technical picture for GBP/USD, pound buyers need to reclaim nearby resistance at 1.3250. Only this will allow them to target 1.3270, above which a breakout will be quite difficult. The furthest target is the 1.3300 level. If the pair falls, bears will attempt to regain control of 1.3225. If they succeed, a breakout of that range will deal a serious blow to the bulls' positions and push GBP/USD down to the 1.3203 low, with the prospect of reaching 1.3170.

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Bitcoin proves its resilience

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Yesterday, Bitcoin surged more than 8%, recovering all the losses from the previous day, and today it has reached the $93,800 mark, clearly aiming for a return to the $100,000 level during the Santa Claus rally.

Meanwhile, the Strategy company, which has recently been under close scrutiny, acknowledged yesterday the possibility of selling BTC in the event of an extreme market situation. Previously, Saylor had stated that the company would never sell its BTC.

Pressure on the company has increased following the significant drop in the cryptocurrency market in November of this year, causing many investors and traders to question the stability of the firm, which holds a considerable record amount of BTC on its balance sheet.

The company stated that they were building reserves to withstand severe BTC drawdowns and to ensure they could maintain the company's value above the BTC balance for the next three years. They added that this meant, in the worst-case scenario, they would not have to sell BTC until 2029. Although this statement came with many caveats, it surprised many investors who firmly believed in Strategy's unwavering commitment to Bitcoin. The market reacted cautiously, suggesting some participants had already factored in such a scenario in their calculations. However, the long-term consequences of this rhetorical shift could be more significant.

As mentioned earlier, the possible reasons prompting Strategy to consider this step are evident. The decline in BTC prices in recent months has seriously impacted the company's financial performance, and increasing volatility only intensifies the pressure. In an unpredictable market environment, the willingness to consider selling a portion of assets can be seen as a sign of prudent risk management aimed at preserving financial stability.

On the other hand, such a move may undermine trust in Strategy as one of the main institutional holders of Bitcoin. Saylor's and the company's devotion to BTC has been a key factor supporting optimism in the market. Abandoning this narrative could lead to further declines in interest in cryptocurrency from institutional investors, negatively impacting its price.

Previously, the company also stated that it would sell its BTC only if the company's stock fell below the net asset value and all financing options disappeared.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently targeting a return to the $95,500 level, which opens a direct route to $99,400. From there, it is only a short step to $102,400. The furthest target is around $105,300. Surpassing this level would represent attempts at a return to a bull market. If Bitcoin declines, I expect buyers around the $92,000 level. A drop below this area could quickly push BTC down to around $89,600, with the most distant target at $87,200.

For Ethereum, clear consolidation above the $3,068 level opens the path to $3,193. The furthest target is around $3,317. Breaking above this level would signify strengthening bullish sentiment in the market and renewed interest from buyers. If Ethereum falls, I expect buyers at the $2,994 level. A return below this area could swiftly bring ETH down to around $2,924, with the most distant support at $2,858.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.

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GBP/USD. Technical Analysis on December 3, 2025

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Trend Analysis (Fig. 1).

On Wednesday, the market may continue moving upward from the 1.3207 level (yesterday's daily candle close) toward the target of 1.3282 — the 38.2% pullback level (blue dotted line). When testing this level, the price may pull back downward toward the target of 1.3274 — the upper fractal (daily candle of December 1, 2025).

Fig. 1 (daily chart).

Comprehensive Analysis:

• Indicator analysis – upward
• Fibonacci levels – upward
• Volumes – upward
• Candlestick analysis – upward
• Trend analysis – upward
• Bollinger Bands – upward
• Weekly chart – upward

Overall conclusion: upward trend.

Alternative scenario: On Wednesday, the market may continue moving upward from the 1.3207 level (yesterday's daily candle close) toward the target of 1.3293 — a historical resistance level (light blue dotted line). When testing this level, the price may pull back downward toward the target of 1.3282 — the 38.2% pullback level (blue dotted line).

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EUR/USD. Technical Analysis on December 3, 2025

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Trend Analysis (Fig. 1).

On Wednesday, the market may continue moving upward from the 1.1621 level (yesterday's daily candle close) toward the target of 1.1655 — the 50% pullback level (blue dotted line). When testing this level, the price may possibly pull back downward to the target of 1.1640 — the 38.2% pullback level (yellow dotted line).

Fig. 1 (daily chart).

Comprehensive Analysis:

• Indicator analysis – upward
• Fibonacci levels – upward
• Volumes – downward
• Candlestick analysis – upward
• Trend analysis – upward
• Bollinger Bands – upward
• Weekly chart – upward

Overall conclusion: upward trend.

Alternative scenario: From the 1.1621 level (yesterday's daily candle close), the price may continue moving upward toward the target of 1.1640 — the 38.2% pullback level (yellow dotted line). When testing this level, the price may possibly pull back downward toward the target of 1.1625 — the upper fractal (daily candle of December 2, 2025).

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Gold: A Debt to Be Paid

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All problems are in the head. Events help us remember them. For example, rumors about the appointment of Kevin Hassett as chairman of the Federal Reserve and the presentation of the British budget project reminded financial markets of the serious fiscal difficulties facing the U.S. It was enough for the "bulls" in XAU/USD to attempt to restore the upward trend.

Gold has risen for the fourth consecutive month. Five out of the last six months, including November, closed in the green zone for the precious metal. It is heading towards the best annual result since 1979, thanks to the influx of capital into ETFs, central banks' demand for bullion, geopolitical factors, and expectations of the Federal Reserve lowering the federal funds rate. U.S. fiscal problems stand out as particularly significant.

Monthly Dynamics of Gold

Donald Trump's big and beautiful tax cut bill could increase government debt to 129% of GDP by 2034. The United States is already paying enormous interest on servicing this debt, reaching 17% of the budget size, more than defense spending. Debt servicing costs are extremely sensitive to rates. It is not surprising that the White House is demanding that the Fed aggressively lower them.

To achieve this, Trump is changing the composition of the FOMC. He managed to advance Stephen Miran there, who votes for a 50-basis-point cut in borrowing costs at every Committee meeting. Another one of the president's people will most likely be Kevin Hassett. He will take the position of Fed chairman, and central bank heads usually get what they want.

Trump is employing the principle of "divide and conquer." It has been a long time since we have seen the FOMC so divided as it is now. The "doves" are targeting a loosening of monetary policy against the backdrop of a freezing labor market, while the "hawks" are concerned about inflation.

Dynamics of Dissenters in the FOMC Composition

At the same time, expectations of a "dovish" shift in Fed thinking could accelerate inflationary expectations and raise Treasury bond yields. All this will occur in the medium term. For now, both debt rates and the U.S. dollar are falling. As a result, there is a tailwind for gold, which the precious metal is actively utilizing.

Moreover, talks between American officials in Moscow concluded without results. The peace plan adjusted by Europe and Ukraine did not appeal to Russia. Geopolitical risk has not disappeared, and this circumstance continues to support the bulls in XAU/USD. If peace approaches, central banks' demand for bullion could significantly decrease, which would negatively impact gold.

Technically, on the daily chart of the precious metal, the quotes have broken out of the triangle, allowing for long positions to be opened on a breakout above $4180 per ounce. A new high following the pin bar around $4233 will create the possibility of increasing positions. Conversely, a drop in gold below $4160 will be a reason for selling.

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Market shows resilience amid economic optimism

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Anyone planning to bet against the S&P 500 should consider the strength of the American economy and the ongoing enthusiasm surrounding artificial intelligence. The US has proven to be more resilient to tariffs than previously thought. The OECD has raised its GDP forecasts by 0.2 percentage points to 2% for 2025 and 1.7% for 2026. Enormous investments in artificial intelligence are boosting gross domestic product as well as stock price growth. Americans are becoming wealthier and continue to spend.

OECD Forecasts for US Economy and Other Countries

According to 22V Research, increased consumer spending and investments in AI technologies will support productivity and allow S&P 500 companies to generate profits. Strategas Asset Management estimates that profits will grow by 12.5% in the next 12 months. Despite a decline in consumer confidence, Americans are still spending money. This may be associated with the wealth effect; as the broad stock index rises, the average American feels more affluent.

To sell the S&P 500, one must be confident in two things: a significant cooling of the US economy in 2026 and a loss of faith in artificial intelligence. Doubts exist in both areas. The US is currently ranked 14th among the largest stock markets, both in national currencies and in dollar terms. The inefficiency of their stock indices gives grounds for reflection. Has the AI technology phenomenon, which became the main driver behind the rally from 2022 to 2024, run its course?

Regarding potential weakness in the US economy in 2026, optimists have a factor that could assist the Fed. The worse things get for the United States, the higher the likelihood of substantial monetary stimulus. However, the muted reaction of the S&P 500 to the outcomes of the recent FOMC meetings suggests a decreasing dependence of the stock market on the dynamics of the federal funds rate.

Dynamics of S&P 500 Sensitivity to FOMC Meetings

In reality, markets are driven by expectations. Therefore, the broad stock index often reacts not to a rate cut itself but to rumors about its future direction. For instance, the belief in Donald Trump appointing Kevin Hassett as the new chair of the Fed provides significant support to the S&P 500. Derivatives predict an interest rate cut of 100 basis points by the end of 2026.

Thus, even any weakness in the US economy does not guarantee a substantial pullback in the broad stock index. The theme of artificial intelligence will continue to be at the forefront of investors' attention.

Technically, on the daily chart of the S&P 500, two consecutive doji candlesticks have emerged, indicating uncertainty. A successful retest of fair value at 6,845 would allow for the buildup of previously established long positions. A failure by bulls would heighten consolidation risks.

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GBP/USD: Plan for the European Session on December 3. The Pound Managed to Navigate

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Yesterday, several entry points into the market were formed. Let's take a look at the 5-minute chart and analyze what happened there. In my morning forecast, I focused on the 1.3203 level and planned to make entry decisions based on it. A decline and the formation of a false breakout around 1.3203 provided a buying opportunity for the pound, but a significant rise in the pair did not materialize. In the second half of the day, active buying around 1.3177 created another buying opportunity for the pound, and this time the pair rose by more than 30 pips.

To open long positions on GBP/USD, it is required:

Good reports from the U.S. put pressure on the pound and support on the dollar, but the bears could not maintain control of the market. Active Asian purchases of GBP/USD indicate a possible continuation of the bullish market, but we should not rush to conclusions. In the first half of the day, we expect data on the UK services PMI and the composite PMI, as well as a speech by Bank of England MPC member Catherine L. Mann. Good reports will help the pound grow. In the event of weak data, buyers will need to defend the intermediate support at 1.3226. Only the formation of a false breakout there will be a reason to open long positions with the aim of raising the pair to the resistance at 1.3250. A breakout and reverse test from the top to the bottom of this range will increase the chances of strengthening GBP/USD, triggering sellers' stop orders and providing a suitable entry point for long positions, with a possible exit at 1.3272 – the weekly high. The furthest target will be around 1.3300, where I plan to take profit. In the event of a decline in GBP/USD and a lack of buyer activity at 1.3226, pressure on the pair will return, leading to movement towards the next support level at 1.3203. Only the formation of a false breakout there will be a suitable condition for opening long positions. I plan to buy GBP/USD immediately on the rebound from the low of 1.3177, targeting a 30-35-pip intraday correction.

To open short positions on GBP/USD, it is required:

Sellers of the pound attempted yesterday to regain control of the market, but all their efforts were unsuccessful. Today, I expect their first manifestation around the resistance at 1.3250. Only the formation of a false breakout will be a reason to sell the pound, aiming for a decline towards the support level of 1.3226. A breakout and reverse test from bottom to top of this range will deal a greater blow to buyers' positions, leading to the triggering of stop orders and opening up the path to 1.3203, where slightly higher moving averages are aligned with the bulls. The furthest target will be around 1.3177, where I will take profit. In the scenario of GBP/USD rising and a lack of activity at 1.3250, buyers will continue to develop the bullish trend, which may lead to a spike towards 1.3272. I plan to open short positions there only on a false breakout. In the absence of downward movement there, I will sell GBP/USD immediately on a rebound from 1.3300, but only with the expectation of a correction of the pair downwards by 30-35 pips intraday.

Recommended for Review:

Due to the U.S. government shutdown, fresh Commitment of Traders data is not being published. As soon as the current report is prepared, we will publish it immediately. The latest data is only available from October 14.

The COT report (Commitment of Traders) showed a reduction in both short and long positions. Pressure on the dollar remains – especially after the latest data that will likely force the U.S. Federal Reserve to continue lowering interest rates. Meanwhile, the Bank of England's policy remains cautious, indicating its clear plans to continue fighting inflation. The short-term future dynamics of the GBP/USD exchange rate will be determined by new fundamental statistics. The latest COT report indicated that long non-commercial positions decreased by 14,896 to 79,515, while short non-commercial positions fell by 7,743 to 91,144. As a result, the spread between long and short positions decreased by 1,612.

Indicator Signals:

Moving Averages

Trading is taking place above the 30 and 50-day moving averages, indicating attempts for the pound to rise.

Note: The period and prices of the moving averages are considered by the author on the hourly chart H1 and differ from the general definition of classic daily moving averages on the daily chart D1.

Bollinger Bands

In the event of a decline, the indicator's lower boundary around 1.3180 will act as support.

Description of Indicators

• Moving Average (determines the current trend by smoothing volatility and noise). Period – 50. Marked in yellow on the chart.
• Moving Average (determines the current trend by smoothing volatility and noise). Period – 30. Marked in green on the chart.
• MACD Indicator (Moving Average Convergence/Divergence). Fast EMA – period 12. Slow EMA – period 26. SMA – period 9.
• Bollinger Bands. Period – 20.
• Non-commercial traders – speculators such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet specific requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• The total non-commercial net position is the difference between the short and long positions of non-commercial traders.

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

EUR/USD: Plan for the European Session on December 3. The Euro Managed to Return to Growth

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Yesterday, only one entry point into the market was formed. Let's take a look at the 5-minute chart and analyze what happened there. In my morning forecast, I focused on the 1.1591 level and planned to make entry decisions based on it. The pair declined, but due to low volatility, it did not reach the test of 1.1591. As a result, I was left without trades. In the second half of the day, a false breakout around 1.1623 provided a good entry point to sell the euro, resulting in a drop of more than 30 pips.

To open long positions on EUR/USD, it is required:

Good data on a sharp increase in the U.S. economic optimism index from RCM/TIPP led to a temporary strengthening of the dollar against the euro, but the market then turned to risk assets. Today, in the first half of the day, the euro may continue to rise. This will depend on the data for the services sector PMI index in the Eurozone, the composite PMI index, and the producer price index. Also today, European Central Bank President Christine Lagarde will give a speech. In the case of weak indicators and a correction in the EUR/USD pair, I expect the first manifestation of euro buyers around the support level of 1.1623, which acted as resistance just yesterday. The formation of a false breakout there will provide an entry point for long positions with the aim of recovering the pair to the resistance at 1.1651, which is the monthly high. A breakout and reverse test of this range will confirm the correctness of actions to buy the euro in anticipation of a larger spike in the pair to 1.1678. The furthest target will be the high at 1.1703, where I will take profit. Testing this level will strengthen the bullish market for the euro. In the scenario of a decline in EUR/USD and a lack of activity around 1.1623, pressure on the pair will return. Sellers will likely reach the next interesting level at 1.1591. Only the formation of a false breakout there will be a suitable condition for buying the euro. I plan to open long positions immediately on a rebound from 1.1558 with the aim of an upward correction of 30-35 pips intraday.

To open short positions on EUR/USD, it is required:

Sellers showed their presence but then lost control of the market. However, while trading is below 1.1651, the chances of keeping the trade within the channel will be quite good. For this reason, bears need to actively show themselves around 1.1651. The formation of a false breakout there will provide an entry point for short positions with the aim of moving the pair to the support level of 1.1623, where slightly lower moving averages support the bulls. A breakout and consolidation below this range against very weak PMI index data from Eurozone countries, along with a reverse test from bottom to top, will also be another suitable scenario for opening short positions with a movement toward 1.1591. The furthest target will be around 1.1558, where I will take profit. In the event of an upward move in EUR/USD and a lack of active bearish action around 1.1651, buyers will have a good opportunity to continue developing the bullish market. In this case, it would be best to postpone short positions until the 1.1678 level. I will sell there only after a failed consolidation. I plan to open short positions immediately on a rebound from 1.1703 with the aim of a downward correction of 30-35 pips.

Recommended for Review:

Due to the U.S. government shutdown, fresh Commitment of Traders data is not being published. As soon as the current report is prepared, we will publish it immediately. The latest data is only available from October 14.

The COT report (Commitment of Traders) showed a reduction in both long and short positions. Expectations of further Federal Reserve interest rate cuts continue to put pressure on the U.S. dollar. The COT report indicated that long non-commercial positions decreased by 12,897 to 243,010, while short non-commercial positions fell by 2,857 to 134,685. As a result, the spread between long and short positions increased by 5,744.

Indicator Signals:

Moving Averages

Trading is taking place above the 30 and 50-day moving averages, indicating further growth of the euro.

Note: The period and prices of the moving averages are considered by the author on the hourly chart H1 and differ from the general definition of classic daily moving averages on the daily chart D1.

Bollinger Bands

In the event of a decline, the indicator's lower boundary around 1.1595 will act as support.

Description of Indicators

• Moving Average (determines the current trend by smoothing volatility and noise). Period – 50. Marked in yellow on the chart.
• Moving Average (determines the current trend by smoothing volatility and noise). Period – 30. Marked in green on the chart.
• MACD Indicator (Moving Average Convergence/Divergence). Fast EMA – period 12. Slow EMA – period 26. SMA – period 9.
• Bollinger Bands. Period – 20.
• Non-commercial traders – speculators such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet specific requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• The total non-commercial net position is the difference between the short and long positions of non-commercial traders.

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

Stock market on December 3: S&P 500 and NASDAQ close higher

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Yesterday, stock indices closed with gains. The S&P 500 rose by 0.25%, while the Nasdaq 100 increased by 0.59%. The Dow Jones Industrial Average strengthened by 0.39%.

On Wednesday, Asian indices traded within narrow ranges, reflecting Wall Street's dynamics as investors remained cautious ahead of the release of several key economic data points from the United States.

The MSCI All Country World Index offset early gains of 0.3%, as Chinese stocks traded on the Hong Kong Stock Exchange showed their worst performance in recent times. European futures indicated a slightly positive market opening, while futures on the S&P 500 rose by 0.2%.

Activity in the cryptocurrency market remained robust. Bitcoin surged for the second session, approaching $94,000, marking a continued rebound after Monday's sell-off. On the currency markets, the Indian rupee fell below the key psychological level of 90 per dollar.

The restrained dynamics in the stock market highlighted how unstable sentiment remains ahead of the decisions by the Federal Reserve and the Bank of Japan on interest rates, which will be made next week. Today, the US is set to publish the ADP report on private sector employment for November, along with the import price index and industrial production data for September.

Particular attention is being paid to the ADP report, which is often seen as a precursor to the official employment data released by the US Department of Labor. However, I remind you that there will be no labor market report this Friday. Strong private sector employment figures may bolster confidence in the resilience of the economy, while weak data could raise concerns about slowing economic growth. This, in turn, could influence the Fed's decisions regarding further rate cuts. Regarding industrial production data, it will provide insights into the health of the manufacturing sector, a key indicator of overall economic activity. A decline in industrial production may indicate waning demand and potential supply chain issues. The import price index is also important, as it can give insight into inflationary pressures coming from abroad.

"The sky certainly isn't clear enough for a broad-based rally," Melbourne-based Vantage Markets said. "The upcoming, decision-shaping US PCE print and a heavy slate of central bank meetings are keeping traders on edge. With so many pivotal signals still ahead, investors are favoring a more conservative stance rather than chasing risk at this stage."

As I mentioned earlier, the Indian rupee weakened amid ongoing delays in concluding a crucial trade agreement with the US, negatively impacting sentiment. Silver fell after its previous record rise, as traders made speculative bets on continued supply shortages and declining interest rates in the US. The price of gold remained relatively unchanged, and WTI oil prices stayed stable.

Regarding the technical picture of the S&P 500, the main task for buyers today will be to overcome the nearest resistance level of $6,854. This would help the index gain ground and pave the way for a potential rally to a new level of $6,874. Another priority for bulls will be to maintain control over the $6,896 mark, which would strengthen buyer positions. In the event of a downturn amid reduced risk appetite, buyers must assert themselves around $6,837. A break below this level would quickly push the trading instrument back to $6,819 and open the way to $6,801.

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

USD/JPY: Simple Trading Tips for Beginner Traders on December 3. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the Japanese Yen

The test of the 155.95 price coincided with a moment when the MACD indicator was just beginning to turn downward from the zero mark, confirming a good entry point to sell the dollar. As a result, the pair decreased by slightly more than 15 pips.

Positive news of a sharp increase in the Economic Optimism Index from RCM/TIPP in the United States prompted a new wave of dollar strength against the Japanese yen; however, it did not spark a broader bullish trend.

Today, data on the Services PMI in Japan was released, which increased to 53.2 points, surpassing economists' forecasts and strengthening the yen against the U.S. dollar. The composite PMI index met economists' expectations. The rise in the Services PMI in Japan indicates a recovery in domestic demand and an improvement in business sentiment among service providers. The results exceeding analysts' expectations suggest stronger-than-anticipated economic growth, which naturally bolsters the national currency. Investors view this news as a signal for possible tightening of monetary policy by the Bank of Japan in the future, further boosting demand for the yen. Overall, the published PMI index data provide a positive signal for the Japanese economy and indicate potential for further growth. However, the sustainability of this growth will depend on numerous factors, including geopolitical conditions, global economic dynamics, and the BoJ's ongoing policies.

As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and No. 2.

Buying Scenarios

Scenario #1: I plan to buy USD/JPY today when the price reaches the entry point around 155.75 (green line on the chart), targeting a move to 156.06 (thicker green line on the chart). I intend to exit my long positions at 156.06 and open shorts in the opposite direction, aiming for a movement of 30-35 pips from the entry point. It is best to return to buying the pair during corrections and significant declines in USD/JPY. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario #2: I also plan to buy USD/JPY today if there are two consecutive tests of the price 155.58 when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. One can expect growth toward the opposite levels of 155.75 and 156.06.

Selling Scenarios

Scenario #1: I plan to sell USD/JPY today only after it reaches 155.58 (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the 155.27 level, where I intend to exit my shorts and also buy immediately in the opposite direction, aiming for a move of 20-25 pips from that level. It is best to sell as high as possible. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning to decline from it.

Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the price 155.75 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. One can expect a decline toward the opposite levels of 155.58 and 155.27.

What's on the Chart:

• Thin green line – entry price at which you can buy the trading instrument;
• Thick green line – estimated price where you can set Take Profit or take profit yourself, as further growth above this level is unlikely;
• Thin red line – entry price at which you can sell the trading instrument;
• Thick red line – estimated price where you can set Take Profit or take profit yourself, as further decline below this level is unlikely;
• MACD Indicator. When entering the market, it is essential to be guided by overbought and oversold zones.

Important: Beginner traders in the Forex market need to make entry decisions with great caution. It is best to stay out of the market before significant fundamental reports to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for the intraday trader.

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

GBP/USD: Simple Trading Tips for Beginner Traders on December 3. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the British Pound

The test of the price at 1.3206 occurred when the MACD indicator was just starting to move upward from the zero mark, confirming a good entry point for buying pounds. However, a significant rise in the pair did not materialize.

Positive news about a sharp increase in the Economic Optimism Index from RCM/TIPP in the United States led to a strengthening of the dollar against the pound. The dollar's strengthening was a likely expected consequence of the data's release. The RCM/TIPP Economic Optimism Index, one of the key indicators of American consumer and investor sentiment, jumped significantly, signaling improved economic prospects in the U.S. This, in turn, increases the dollar's attractiveness as an investment asset.

Today, in the first half of the day, we are awaiting data on the UK Services PMI and the composite PMI, as well as a speech by Bank of England Monetary Policy Committee member Catherine L. Mann. Catherine Mann's speech may shed light on current sentiment within the BoE's Monetary Policy Committee, as some experts lean towards a more dovish stance for the BoE by year-end. Her comments regarding inflation, the labor market, and economic growth prospects will be closely analyzed by market participants to assess the likelihood of further interest rate cuts. Any disagreements within the MPC, if manifested in her speech, could lead to volatility in the currency market.

The Services PMI index will provide important information about the state of one of the key sectors of the British economy. Higher index values will indicate expanding activity, which could support the British pound. Conversely, a drop in the index below 50 points signals a contraction in activity and may trigger a negative reaction from investors. The composite PMI index, as an aggregated measure, will provide an overall view of the health of the British economy, combining data from both the manufacturing and services sectors. It is an important indicator for forecasting future GDP dynamics.

As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and No. 2.

Buying Scenarios

Scenario #1: I plan to buy pounds today when the price reaches the entry point around 1.3245 (green line on the chart), targeting a move to 1.3266 (thicker green line on the chart). I intend to exit the market at 1.3266 and sell immediately on the bounce, aiming for a 30-35-pip move from the entry point. Strong pound growth can only be expected after good economic data. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just beginning to rise from it.

Scenario #2: I also plan to buy pounds today if there are two consecutive tests of the price 1.3232 when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. We can expect growth toward the opposite levels of 1.3245 and 1.3266.

Selling Scenarios

Scenario #1: I plan to sell pounds today after the pair reaches 1.3232 (red line on the chart), which will trigger a quick decline in the pair. The key target for sellers will be the level of 1.3210, where I intend to exit the short positions and also buy immediately in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from the level). The pound sellers will be activated if the reports are weak. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning to decline from it.

Scenario #2: I also plan to sell pounds today if there are two consecutive tests of the price 1.3245 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. We can expect a decline toward the opposite levels of 1.3232 and 1.3210.

What's on the Chart:

• Thin green line – entry price at which you can buy the trading instrument;
• Thick green line – estimated price where you can set Take Profit or take profit yourself, as further growth above this level is unlikely;
• Thin red line – entry price at which you can sell the trading instrument;
• Thick red line – estimated price where you can set Take Profit or take profit yourself, as further decline below this level is unlikely;
• MACD Indicator. When entering the market, it is essential to be guided by overbought and oversold zones.

Important: Beginner traders in the Forex market need to make entry decisions with great caution. It is best to stay out of the market before significant fundamental reports to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for the intraday trader.

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

EUR/USD: Simple Trading Tips for Beginner Traders on December 3. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the Euro

The test of the price at 1.1613 occurred when the MACD indicator was starting to move upward from the zero line, confirming a good entry point to buy euros. As a result, the pair only rose by 10 pips before pressure returned.

Positive news about a steady increase in the Economic Optimism Index from RCM/TIPP in the United States initially led to a temporary strengthening of the dollar against the euro, undermining any bullish potential and preventing the entry point for buying euros from fully materializing. However, after a slight strengthening of the dollar, market participants quickly reassessed their forecasts, taking into account global risks and the likelihood of U.S. interest rate cuts.

Today, in the first half of the day, the euro's growth may continue. This will depend on the data regarding the Services PMI index, the composite PMI, and the Producer Price Index (PPI). Additionally, European Central Bank President Christine Lagarde will be delivering a speech today. If the indicators turn out to be better than expected, the euro will receive an additional boost for growth. Otherwise, pressure on the single currency may return, and we could see a downward correction. Market attention will also be focused on Lagarde's rhetoric; any hints at possible monetary policy easing could negatively affect the euro.

At the same time, it's important to consider that the overall fundamental backdrop for the euro remains quite favorable. Inflation in the Eurozone is slowing, which suggests the central bank will likely continue to adopt a wait-and-see monetary policy, supporting the euro in the medium term. From a technical perspective, the euro is currently in a phase of growth, and breaking through key resistance levels could open the way for further gains. However, the possibility of a downward correction remains, especially if the PMI and PPI data disappoint.

As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and No. 2.

Buying Scenarios

Scenario #1: Today, I plan to buy euros when the price reaches around 1.1655 (green line on the chart), targeting a move to 1.1676. I plan to exit the market at 1.1676 and also sell euros immediately on the bounce, aiming for a movement of 30-35 pips from the entry point. One can expect euro growth only after good data. Important! Before purchasing, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario #2: I also plan to buy euros today if there are two consecutive tests of 1.1641 when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. We can expect growth toward the opposite levels of 1.1655 and 1.1676.

Selling Scenarios

Scenario #1: I plan to sell euros once the price reaches 1.1641 (red line on the chart). The target will be the level of 1.1621, where I intend to exit the market and buy immediately in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair will return with weak data. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario #2: I also plan to sell euros today if there are two consecutive tests of the price at 1.1655 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. We can expect a decline toward the opposite levels of 1.1641 and 1.1621.

What's on the Chart:

• Thin green line – entry price at which you can buy the trading instrument;
• Thick green line – estimated price where you can set Take Profit or take profit yourself, as further growth above this level is unlikely;
• Thin red line – entry price at which you can sell the trading instrument;
• Thick red line – estimated price where you can set Take Profit or take profit yourself, as further decline below this level is unlikely;
• MACD Indicator. When entering the market, it is essential to be guided by overbought and oversold zones.

Important: Beginner traders in the Forex market need to make entry decisions with great caution. It is best to stay out of the market before significant fundamental reports to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for the intraday trader.

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

Trading Recommendations for the Cryptocurrency Market on December 3

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Bitcoin has recovered all losses from the previous day and reached a monthly high, trading around $94,000 at the time of writing. Ethereum has also broken above $3,000.

The sharp rise in the cryptocurrency market occurred yesterday after Bank of America (BofA) recommended that investors allocate 4% of their portfolios to cryptocurrency investments. The bank also advocated for lifting restrictions on banking organizations' investments in crypto ETFs.

BofA's statement was the catalyst that the crypto market had been waiting for. Within hours, major cryptocurrencies like Bitcoin and Ethereum demonstrated a rapid percentage increase, while altcoins surged even higher. Investors interpreted this signal as a green light for broader adoption of cryptocurrencies by institutional players. Several factors can explain BofA's recommendations. Firstly, there is a growing recognition of cryptocurrencies as an asset class with the potential for high returns. Secondly, there has been a decrease in concerns regarding regulatory risks. Thirdly, the bank aims to provide its clients with access to a diversified portfolio that includes assets with low correlation to traditional markets.

The lifting of restrictions on banking organizations' investments in crypto ETFs could open the floodgates for significant capital inflows into the crypto market. This would allow banks to offer their clients a simple and regulated way to invest in cryptocurrencies without worrying about the custody and security of the assets. In the long term, BofA's recommendation and the potential lifting of restrictions for banks could become an essential step toward integrating cryptocurrencies into the financial system. This could lead to sustainable growth in the crypto market and increase its stability.

Regarding intraday strategies in the cryptocurrency market, I will continue to act based on any major pullbacks in Bitcoin and Ethereum, anticipating the continued development of the bullish market in the medium term.

As for short-term trading, the strategy and conditions are described below.

Bitcoin

Buying Scenario

• Scenario #1: I will buy Bitcoin today when it reaches the entry point around $94,400, targeting a move to $97,000. I plan to exit my buys around $97,000 and sell immediately on the bounce. Before purchasing on a breakout, ensure the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: Bitcoin can be bought from the lower boundary at $92,900 if there is no market reaction to its breakout in the opposite direction towards the levels of $94,400 and $97,000.

Selling Scenario

• Scenario #1: I will sell Bitcoin today upon reaching the entry point around $92,900, targeting a decline to $91,000. I will exit my sells around $91,000 and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is in the negative zone.
• Scenario #2: Bitcoin can be sold from the upper boundary at $94,400 if there is no market reaction to its breakout in the opposite direction towards the levels of $92,900 and $91,000.

Ethereum

Buying Scenario

• Scenario #1: I will buy Ethereum today upon reaching the entry point around $3,097, targeting a move to $3,159. I intend to exit my buys around $3,159 and sell immediately on the bounce. Before purchasing on a breakout, ensure the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: Ethereum can be bought from the lower boundary at $3,054 if there is no market reaction to its breakout in the opposite direction towards the levels of $3,097 and $3,159.

Selling Scenario

• Scenario #1: I will sell Ethereum today upon reaching the entry point around $3,054, targeting a decline to $2,988. I will exit my sells around $2,988 and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is in the negative zone.
• Scenario #2: Ethereum can be sold from the upper boundary at $3,097 if there is no market reaction to its breakout in the opposite direction towards the levels of $3,054 and $2,988.

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

XPD/USD has the potential to strengthen today and test its nearest resistance level

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[Palladium vs USD]

With all technical conditions such as the Golden Cross intersection between the two EMAs and the RSI in the Neutral-Bullish area, then XPD/USD has the potential to strengthen in the near term.

Key Levels

1. Resistance. 2 : 1530.57

2. Resistance. 1 : 1508.51

3. Pivot : 1464.88

4. Support. 1 : 1442.82

5. Support. 2 : 1399.19

Tactical Scenario:

Positive Reaction Zone: If the price of XPD/USD breaks out and closes above 1464.88, it has the potential to strengthen to 1508.51.

Momentum Extension Bias: If 1508.51 is successfully broken, then XPD/USD will test the level at 1530.57.

Invalidation Level / Bias Revision:

The upside bias weakens if the price of Palladium vs USD falls below 1399.19.

Technical Summary:

EMA(50) : 1471.29

EMA(200): 1451.90

RSI(14) : 55.63

Economic News Release Agenda:

Tonight, the following economic data will be released from the United States:

US - ADP Non-Farm Employment Change - 20:15 WIB

US - Import Prices m/m - 20:30 WIB

US - Capacity Utilization Rate - 21:15 WIB

US - Industrial Production m/m - 21:15 WIB

US - Final Services PMI - 21:45 WIB

US - ISM Services PMI - 22:00 WIB

US - Crude Oil Inventories - 22:30 WIB

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

Natural Gas on Wednesday, December 03, 2025, has the potential to test its nearest resistance level.

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[Natural Gas]

With the RSI(14) positioned in the Neutral-Bullish area and both of EMAs forming a Golden Cross, Natural Gas has the opportunity to strengthen today.

Key Levels

1. Resistance. 2 : 5.049

2. Resistance. 1 : 4.938

3. Pivot : 4.871

4. Support. 1 : 4.760

5. Support. 2 : 4.693

Tactical Scenario:

Positive Reaction Zone: If the price of #NG breaks out and closes above 4.871, it has the potential to test the 4.938 level.

Momentum Extension Bias: If #NG successfully breaks above 4.938, then it may continue its strength up to 5.049.

Invalidation Level / Bias Revision:

The upside bias weakens if the price of Natural Gas declines and breaks down below 4.693.

Technical Summary:

EMA(50) : 4.865

EMA(200): 4.756

RSI(14) : 54.66

Economic News Release Agenda:

Tonight, the following economic data will be released from the United States:

US - ADP Non-Farm Employment Change - 20:15 WIB

US - Import Prices m/m - 20:30 WIB

US - Capacity Utilization Rate - 21:15 WIB

US - Industrial Production m/m - 21:15 WIB

US - Final Services PMI - 21:45 WIB

US - ISM Services PMI - 22:00 WIB

US - Crude Oil Inventories - 22:30 WIB

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

Intraday Strategies for Beginner Traders on December 3

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Buyers of the euro and the pound have made their presence felt after yesterday's good corrections against the U.S. dollar, fueling expectations of continued bullishness in risk assets.

Positive data on the increase in the Economic Optimism Index in the U.S. from RCM/TIPP led to a temporary strengthening of the dollar, but the market subsequently reversed. The initial surge, fueled by hopes of sustainable economic growth in the U.S., proved short-lived. Traders quickly reassessed the situation, focusing on the increased odds of a Federal Reserve rate cut next week, which again weakened the dollar's position. Given that the short-term upward momentum of the dollar was swiftly countered by broader macroeconomic trends and shifts in investor risk appetite, we can expect the euro, pound, and other risk assets to continue to rise.

Today, in the first half of the day, everything will depend on the data regarding the Services PMI, the composite PMI, and the Producer Price Index (PPI) in the Eurozone. Additionally, European Central Bank President Christine Lagarde will be delivering a speech today. Similar reports on the services sector will also be published for the UK.

A close examination of macroeconomic indicators will allow traders to assess the resilience of economies' recoveries after recent shocks. The Services PMI, in particular, will provide information about the state of a key sector that constitutes a significant part of both the European and British GDP. The composite PMI, on the other hand, will aggregate data across all sectors of the economy, offering a more comprehensive picture of the economic climate.

The Eurozone's PPI also deserves focused attention, as it may signal inflationary pressures in the manufacturing sector. An increase in PPI could foreshadow further increases in consumer prices, which would affect the ECB's monetary policy decisions.

Christine Lagarde's speech is anticipated to be the key event of the day. Traders will closely monitor her comments regarding the current economic situation, growth prospects, inflation, and signals about the ECB's future actions.

Equally important will be the speech by Bank of England Monetary Policy Committee member Catherine L. Mann. Given the current economic situation, characterized by high inflation and risks to the UK economy, traders will carefully analyze her comments on the prospects for monetary policy. Any hints at potential interest rate cuts could have a significant impact on the British pound.

If the data aligns with economists' expectations, it is advisable to employ a Mean Reversion strategy. If the data is significantly above or below economists' expectations, a Momentum strategy should be used.

Momentum Strategy (Breakout):

For EUR/USD

• Buy on a breakout of the level 1.1651, which could lead to the euro rising to around 1.1678 and 1.1703.
• Sell on a breakout of the level 1.1623, which could lead to the euro falling to around 1.1591 and 1.1558.

For GBP/USD

• Buy on a breakout of the level 1.3250, which could lead to the pound rising to around 1.3272 and 1.3300.
• Sell on a breakout of the level 1.3226, which could lead to the pound falling to around 1.3203 and 1.3177.

For USD/JPY

• Buy on a breakout of the level 155.75, which could lead to the dollar rising to around 156.12 and 156.55.
• Sell on a breakout of the level 155.40, which could lead to the dollar declining to around 155.08 and 154.77.

Mean Reversion Strategy (Return):

For EUR/USD

• Look for sales after a failed breakout above 1.1654 on a return below this level.
• Look for buys after a failed breakout above 1.1628 on a return to this level.

For GBP/USD

• Look for sales after a failed breakout above 1.3248 on a return below this level.
• Look for buys after a failed breakout above 1.3215 on a return to this level.

For AUD/USD

• Look for sales after a failed breakout above 0.6594 on a return below this level.
• Look for buys after a failed breakout above 0.6561 on a return to this level.

For USD/CAD

• Look for sales after a failed breakout above 1.3983 on a return below this level.
• Look for buys after a failed breakout above 1.3961 on a return to this level.

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

What to Pay Attention to on December 3? Fundamental Events Overview for Beginners

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Analysis of Macroeconomic Reports:

At first glance, there are quite a few macroeconomic reports scheduled for Tuesday. However, most of them do not seem interesting at this point. It is worth recalling that the market has already ignored the ISM report in the U.S. and the inflation and unemployment reports from the Eurozone this week. What are the chances that it will react to the second estimates of service sector PMI indices from Germany, the EU, and the UK? Therefore, these data can be safely overlooked. The only American releases that pique interest include the ADP labor market report, the ISM Services Activity Index, and industrial production data. These reports could provoke a completely illogical market reaction, but they should still not be ignored.

Analysis of Fundamental Events:

Few fundamental events are planned for Wednesday, and there are no significant ones among them. Yes, speeches by Christine Lagarde and Philip Lane may sound imposing, but it should be remembered that there are currently no questions from the market regarding the European Central Bank's monetary policy. The ECB has completed the process of lowering the key rate, and even yesterday's inflation increase is unlikely to compel the ECB to reconsider its monetary policy parameters. As for the Federal Reserve, the "quiet period" is in effect. The Fed meeting will take place next week, so FOMC representatives are currently not allowed to make comments regarding monetary policy.

General Conclusions:

On the third trading day of the week, both currency pairs are likely to trend upward, as an upward trend continues to form in both. The euro has a great trading area at 1.1655-1.1666. The British pound has an area at 1.3203-1.3211 and is currently in a range. Volatility on Wednesday may remain low, but there could still be some emotional spikes during the American trading session.

Key Rules of the Trading System:

1. The strength of a signal is determined by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near a certain level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can form a multitude of false signals or none at all. At the first signs of a flat, it is better to stop trading.
4. Trades are opened during the time between the start of the European session and mid-American session, after which all trades should be closed manually.
5. On the hourly timeframe, using signals from the MACD indicator, it is preferable to trade only when good volatility exists, and a trend is confirmed by a trend line or channel.
6. If two levels are too close to each other (5 to 20 pips), they should be viewed as an area of support or resistance.
7. After moving 15-20 pips in the right direction, a Stop Loss should be set to breakeven.

Chart Explanations:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction to trade.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is crucial to understand that not every trade can be profitable. Developing a clear strategy and implementing sound money management are keys to successful long-term trading.

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

How to Trade the GBP/USD Currency Pair on December 3? Simple Tips and Trade Analysis for Beginners

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Analysis of Tuesday's Trades:

1H Chart for GBP/USD

The GBP/USD pair traded "as if at a wake" on Tuesday. First, we witnessed another decline in the currency pair, with no clear reasons apparent. Secondly, the market effectively ignored the technical level of 1.3203, which had previously provided support twice. Thirdly, there is a possibility of forming a local range. Fourthly, the pair's volatility was 43 pips. Under these conditions, trading could not have been better. Nevertheless, with considerable effort, the British pound is still maintaining an upward trend. Thus, continued growth can be anticipated. However, this is unlikely to be rapid growth that enables easy, profitable trading. Instead, it will likely be a slow, "grinding" movement that ignores the macroeconomic backdrop entirely.

5M Chart for GBP/USD

On the 5-minute timeframe, several trading signals were formed yesterday, but with an overall volatility of 43 pips, it was clear that making a profit from any signal was quite difficult. The price generated two sell signals in the 1.3203-1.3211 area, and a third buy signal emerged late last night. In both instances of sell signals, the price only dropped 15 pips, which was insufficient to set a stop-loss to breakeven. However, there shouldn't have been any losses on the short positions if beginner traders had closed their positions before the evening, as it was clear by then that no significant market movements would occur.

How to Trade on Wednesday:

On the hourly timeframe, the GBP/USD pair continues to form a local upward trend but has become stuck in yet another range. As mentioned, no global factors are driving a sustained rise in the dollar, so in the medium term, we expect movements only to the upside. The correction/range on the daily timeframe may not yet be complete, but any local trend on the hourly timeframe potentially signifies the resumption of the global trend.

On Wednesday, beginner traders can expect new trading signals to form in the 1.3203-1.3211 area, which can now be considered the lower boundary of the range on the hourly timeframe. A bounce from this area will allow for long positions targeting 1.3259. A consolidation below this level will warrant short positions targeting 1.3096-1.3107.

On the 5-minute timeframe, trading can currently focus on the levels: 1.2913, 1.2980-1.2993, 1.3043, 1.3096-1.3107, 1.3203-1.3211, 1.3259, 1.3329-1.3331, 1.3413-1.3421, 1.3466-1.3475, 1.3529-1.3543, 1.3574-1.3590. On Wednesday, there are no significant reports or fundamental events scheduled in the UK, while the U.S. will release several important reports, including the ISM Services Activity Index, the ADP report, and industrial production data.

Key Rules of the Trading System:

1. The strength of a signal is assessed by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near any level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can create numerous false signals or none at all. In any case, it's better to stop trading at the first signs of a flat.
4. Trades are opened during the period between the start of the European session and the middle of the American session, after which all trades must be closed manually.
5. On the hourly timeframe, when trading based on signals from the MACD indicator, it is preferable to trade only when good volatility is present, and a trend is confirmed by a trend line or channel.
6. If two levels are positioned too closely to each other (5 to 20 points), they should be viewed as a support or resistance area.
7. After moving 20 pips in the right direction, set the Stop Loss to breakeven.

Chart Explanation:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is important to understand that not every trade can be profitable. Developing a clear strategy and practicing money management are keys to long-term trading success.

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

How to Trade the EUR/USD Currency Pair on December 3? Simple Tips and Trade Analysis for Beginners

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Analysis of Tuesday's Trades:

1H Chart for EUR/USD

The EUR/USD currency pair traded with an overall volatility of 32 pips on Tuesday. Even relatively important reports on unemployment and inflation in the Eurozone did not provide any help. Both reports showed unexpected figures that did not match forecasts, but the market simply refused to trade. However, the upward trend remained intact by the end of the day, and yet another irrational and illogical rise of the American currency was avoided. Thus, both in the short-term and long-term, we still expect only growth of the euro. This week, it can be stated that traders continue to ignore the macroeconomic backdrop. On Monday, the ISM Manufacturing Index sparked a very strange market reaction, and on Tuesday, the market completely overlooked the unemployment and inflation reports. The daily timeframe continues to show a flat trend, with the price seemingly turning around near its lower boundary—the 1.1400 level. Therefore, we expect growth towards the upper boundary—the 1.1800 level.

5M Chart for EUR/USD

On the 5-minute timeframe, no trading signals were generated during Tuesday, which is not surprising given the volatility of only 32 pips. Thus, there were no grounds for beginners to enter the market.

How to Trade on Wednesday:

On the hourly timeframe, the EUR/USD pair has begun another attempt at ascending. The overall fundamental and macroeconomic background remains very weak for the U.S. dollar, thus the pair can continue to show declines only on technical grounds—the flat trend on the daily timeframe remains relevant. However, we anticipate its conclusion and the resumption of the upward trend in 2025. Market volatility remains low.

On Wednesday, beginner traders can again trade from the area of 1.1655-1.1666. A price bounce from this area will allow for opening short positions targeting 1.1584-1.1571. A consolidation above this area will warrant long positions targeting 1.1745-1.1754.

On the 5-minute timeframe, levels to consider are 1.1354-1.1363, 1.1413, 1.1455-1.1474, 1.1527-1.1531, 1.1571-1.1584, 1.1655-1.1666, 1.1745-1.1754, 1.1808, 1.1851, 1.1908, and 1.1970-1.1988. No significant events or reports are scheduled in the Eurozone for Wednesday, while the U.S. will release reports on industrial production, the ADP labor market, and the ISM services activity index. Again, while these are quite important reports, it is impossible to predict what reaction they might provoke today, if any.

Key Rules of the Trading System:

1. The strength of a signal is determined by the time it takes to form the signal (bounce or breakout). The less time required, the stronger the signal.
2. If two or more trades were opened near any level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair may form numerous false signals or none at all. At the first signs of a flat, it is better to stop trading.
4. Trades are opened during the period between the beginning of the European session and the middle of the American session, after which all trades should be closed manually.
5. On the hourly timeframe, it is preferred to trade only when there is good volatility and a trend confirmed by the trend line or channel, using signals from the MACD indicator.
6. If two levels are too close to each other (5 to 20 pips), they should be viewed as a support or resistance area.
7. Upon moving 15 pips in the right direction, set the Stop Loss to breakeven.

Chart Explanations:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• MACD Indicator (14, 22, 3): A histogram and signal line; a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is important to understand that not every trade can be profitable. Developing a clear strategy and practicing money management are keys to long-term trading success.

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

GBP/USD Review. December 3. The British Pound Suffers More than It Grows

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The GBP/USD currency pair traded relatively weakly on Tuesday, as expected given the absence of significant macroeconomic events in both the UK and the US. The most notable event of the day was Donald Trump's statement that he has decided on a new Federal Reserve chair, "the name of whom will be announced later." Nevertheless, the British currency is gradually appreciating, and it is important to remember that any trend begins with a slight movement.

Several interesting technical moments emerged on Tuesday and are worth analyzing. Firstly, the GBP/USD pair failed to overcome the moving average line, which means that the upward trend remains. Secondly, during the European trading session, the price gained liquidity on buy orders from several recent local lows. Of course, one should not expect a 500-pip rise following such local signals, but the British pound has a fair chance to continue its moderate strengthening.

Many experts have become skeptical about the British currency in recent months. We believe this is due to GBP dynamics, which have not always aligned with macroeconomic data and fundamentals. Often, the pound has fallen without any real justification. The market has diligently ignored the continuous stream of negativity from across the ocean. For example, the dollar did not recover from the "shutdown" or the two rate cuts by the Fed.

The latest rise of the American currency began on the very day the Fed decided to resume easing monetary policy. Since then, the Fed has only been lowering rates, and the dollar has been appreciating. Thus, we find that the decline of the pair over the last 2.5 months is illogical. Therefore, we expect (as before) growth going forward.

Overall, the global fundamental backdrop remains unchanged for both the pound and the dollar. The dollar has accumulated a range of factors leading to its decline, which would be sufficient for several years ahead. We won't list them again, but the trend is still upward, as shown clearly on the daily chart. Yes, the correction has been much stronger than we anticipated, and even now, there is no confidence that it has ended. However, the market also cannot continue to ignore the fundamentals indefinitely.

Next week, the Fed will hold its last meeting of the year, and the probability of a third consecutive rate cut stands at nearly 90%. This is even without the latest, relevant reports on the labor market and unemployment. If the upcoming Non-Farm Payrolls and unemployment reports do not deliver positive results again, the dollar's outlook will worsen further. The Fed may indeed have to overlook rising inflation because the labor market decline needs to be halted. Next year, the new Fed chair will also advocate for rate cuts.

The average volatility of the GBP/USD currency pair over the last five trading days is 69 pips, which is considered "average" for this pair. On Wednesday, December 3, we expect movement within a range bounded by 1.3119 and 1.3257. The upper linear regression channel is directed downward, but this is solely due to technical corrections on higher timeframes. The CCI indicator has entered the oversold area 6 times in recent months and has formed another "bullish" divergence, consistently signaling a potential resumption of the upward trend.

Nearest Support Levels:

• S1 – 1.3184
• S2 – 1.3123
• S3 – 1.3062

Nearest Resistance Levels:

• R1 – 1.3245
• R2 – 1.3306
• R3 – 1.3367

Trading Recommendations:

The GBP/USD currency pair is trying to resume the upward trend of 2025, and its long-term prospects remain unchanged. Donald Trump's policies will continue to exert pressure on the dollar, so we do not expect the American currency to rise. Consequently, long positions with targets at 1.3306 and 1.3428 remain relevant for the near term as long as the price is above the moving average. If the price is located below the moving average line, small short positions can be considered with a target at 1.3062 on technical grounds. The American currency shows corrections from time to time (on a global scale), but for substantial strengthening, it needs signs of an end to the trade war or other positive global factors.

Illustration Explanations:

• Linear Regression Channels: Help determine the current trend. If both are directed in the same way, it indicates a strong trend.
• Moving Average (settings 20,0, smoothed): Defines the short-term trend and the direction for current trades.
• Murray Levels: Target levels for movements and corrections.
• Volatility Levels (red lines): The probable price channel in which the pair will spend the next 24 hours based on current volatility metrics.
• CCI Indicator: Its entry into the oversold area (below -250) or the overbought area (above +250) indicates that a trend reversal in the opposite direction is approaching.

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

EUR/USD Review. December 3. The Market Has Put Off Matters Until 2026

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The EUR/USD currency pair traded quite calmly on Tuesday. We have mentioned volatility in every article, as we believe it is currently a key factor. With any macroeconomic backdrop, fundamentals, or technical picture, if there are no market movements (or they are extremely weak), it is difficult to expect high profits from trades. The EUR/USD pair has been trading in a range for five consecutive months, as shown on the daily timeframe. We consider the range to be the second-most important factor in analyzing the pair's movements. Range + low volatility, what can we expect now?

The macroeconomic backdrop on Tuesday had the potential to provoke decent movements in the euro, but the market chose to ignore the reports on unemployment and inflation. As previously mentioned, the Consumer Price Index (CPI) in the Eurozone is currently of limited significance for the euro, as its value is almost equal to the European Central Bank's target level. Thus, the ECB has no reason to consider changing the monetary course. A slight increase in inflation for November is practically meaningless. Conversely, the unemployment rate, which rose to 6.4%, is also unlikely to be deemed a "failure." For example, in 2023, the unemployment rate in the Eurozone was 6.7%, and in October 2020, it was 8.4%. Therefore, in the long term, this indicator is declining and, over the past year, has fluctuated between 6.1% and 6.5%. Thus, there is no cause for alarm.

Essentially, the key event of the day was Donald Trump's announcement that he had chosen a new Federal Reserve chair. However, he did not name the president and intends to maintain a prolonged theatrical pause. Yet there is no real intrigue in this. Markets are confident that the new Fed chair will be Kevin Hassett, the current Trump advisor on economic matters. Traders also understand that it does not matter who the new Fed chair will be; it will be a person aligned with Trump, which means he will indeed follow the White House's directives.

Since Trump desires a significantly lower key interest rate, one can be certain that Hassett will support easing at every meeting, as Stephen Miran does now. The only question is how the "independent wing" of the Monetary Committee will behave. It should be recalled that most FOMC officials are concerned about new inflation rises and are not prepared to sacrifice one mandate (price stability) for another (full employment). At the moment, there are still more "hawks" than "doves." Therefore, Trump may need to fire one or two officials resistant to rate cuts to tilt the balance in favor of his agenda during monetary votes, or at least make an attempt to do so. However, in any case, the new Fed head will exert pressure on all the "hawks." Trump would criticize from the outside, while the new chair would act from within the Fed.

The average volatility of the EUR/USD currency pair over the last five trading days as of December 3 is 47 pips and is characterized as "medium-low." We expect the pair to trade between 1.1559 and 1.1653 on Wednesday. The upper linear regression channel is directed downward, indicating a bearish trend, but in reality, the pair continues to trade sideways on the daily timeframe. The CCI indicator entered the oversold area twice in October, which could trigger a new wave of the upward trend in 2025.

Nearest Support Levels:

• S1 – 1.1597
• S2 – 1.1566
• S3 – 1.1536

Nearest Resistance Levels:

• R1 – 1.1627
• R2 – 1.1658
• R3 – 1.1688

Trading Recommendations:

The EUR/USD pair remains below the moving average, but the upward trend persists across all higher timeframes, while the daily timeframe has been in a range for several months. The global fundamental backdrop remains immensely important for the market. We see that the dollar has recently been rising, but it has only moved within a sideways channel. For long-term growth, it lacks a fundamental basis. With the price below the moving average, small short positions can be considered, with targets at 1.1559 and 1.1536 based solely on technical grounds. Above the moving average, long positions remain relevant with a target of 1.1800 (the upper line of the range on the daily timeframe).

Illustration Explanations:

• Linear Regression Channels: Help determine the current trend. If both are directed in the same way, it indicates a strong trend.
• Moving Average (settings 20,0, smoothed): Defines the short-term trend and the direction for current trades.
• Murray Levels: Target levels for movements and corrections.
• Volatility Levels (red lines): The probable price channel in which the pair will spend the next 24 hours based on current volatility metrics.
• CCI Indicator: Its entry into the oversold area (below -250) or the overbought area (above +250) indicates that a trend reversal in the opposite direction is approaching.

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