EUR / USD. November 7th. The trading system. "Regression Channels". Elections in the States do not yet have a proper impact

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 122.8650

The currency pair EUR / USD on Wednesday, November 7, continues to frankly weak upward movement. Such a move means only one thing, even considering the losses of the European currency in recent months, traders buy the euro very reluctantly. This, in turn, means that market participants do not see any real reason for large and long-term purchases of the pair. Accordingly, purchases of the US dollar may resume at any time. The official results of the elections to the US Congress at the moment is not yet released. Nor can it be said that the slight increase in the euro that has been observed in recent days is somehow related to elections in the States. Thus, we still believe that if the market's response to the elections is followed, then only when the official results become known. In the meantime, the pair is still more affected by the Brexit theme, which has not received any new information in recent days. However, negotiations with the EU will have to end in something, either by signing an agreement or by acknowledging the failure of the negotiations. New political changes in the British Parliament are also not excluded. In general, now the market has created a lull, which is unlikely to last for a long time. To date, not a single important macroeconomic report has been scheduled either in the European Union or in the United States. It will be possible to pay attention only to retail sales in the EU, but this is not the most important indicator.

Nearest support levels:

S1 - 1,1414

S2 - 1.1353

S3 - 1,1292

Nearest resistance levels:

R1 - 1.1475

R2 - 1.1536

R3 - 1.1597

Trading recommendations:

The EUR / USD currency pair continues a slight upward movement. Thus, it is now recommended to stay long with the goal of 1.1475, and in the case of overcoming this level, with the goal of 1.1536.

Sell orders are recommended to open with the goal of 1.1353 if the pair overcomes a moving average line. In this case, you can expect the resumption of the formation of a downward trend in the instrument.

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.

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