EUR / USD. November 6th. The trading system. "Regression Channels". Volatility is reduced due to the lack of important news.

4-hour timeframe

Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 71.6576

The currency pair EUR / USD on Monday, November 5, tried to resume the downtrend, but the first attempt ended in failure. The pair returned to the area above the moving average line, but the Murray's level of "3/8" could not be overcome. Thus, now there is uncertainty about the instrument, as the pair is stuck between Murray levels of "2/8" and "3/8". Today in the eurozone, data on the indices of business activity in the areas of production and services Markit will be published. The strong values of these indexes can support the Eurocurrency and help overcome the Murray level of "3/8". Conversely, weak actual values will help the US currency. No important macroeconomic information is expected from the States today. Thus, pair volatility may remain relatively low. In addition to the lack of important macroeconomic statistics, traders are clearly waiting for new information on the topic of Brexit. There is a situation when it is simply impossible to ignore the negotiations between the EU and the UK. The talks themselves are dragged out and are accompanied by a whole mass of various disagreements between the parties, rallies in London, the outright displeasure of the Parliament and the British population with the position of Theresa May, as well as talks about the possible resignation of the prime minister. All these events affect not only the pound, but also the euro.

Nearest support levels:

S1 - 1.1353

S2 - 1,1292

S3 - 1.1230

Nearest resistance levels:

R1 - 1,1414

R2 - 1.1475

R3 - 1.1536

Trading recommendations:

The currency pair EUR / USD is trying to resume movement up. We recommend waiting to overcome the level of 1.1414, then open new long positions with a target of 1.1475. There is a high probability of a new round of corrective movement.

Short positions are recommended to open with the target of 1.1353, if the pair consolidates below the MA. However, before the price fixes below the Murray's level of "2/8", it will be premature to talk about a trend change to a downward trend.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear regression channel is the purple lines of the unidirectional movement.

CCI - blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.