4-hour timeframe

Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -110.9747

The EUR / USD instrument on Tuesday, October 23, continues its downward movement after the price rebounds from the moving average line. As we have said, the key factor for traders is now technical, since no new macroeconomic reports were published on Monday, there will be none on Tuesday and Wednesday. We consider the news on the Italian budget and disagreements with the EU government on this issue a bit overvalued. From our point of view, events related to Brexit can now influence the movement of the pair. There is no new data on this topic either. Thus, before the Heikin Ashi indicator turns up, it is possible to maintain previously opened short positions. The bulls did not manage to seize the initiative on the instrument at the time of the last lifting. Thus, the trend for the instrument remains downward. At the moment, there is not a single fundamental factor that could increase the demand for the European currency. Perhaps, the ECB press conference on Thursday will bring some optimism to the market. Although to be honest, there is little hope for that. Thus, it remains only to wait for traders to get saturated with dollar purchases and begin to fix positions on sales. Or when the market comes disappointing information from the States, or, conversely, positive from the EU.

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 to move down. Based on this, it is now recommended to be in short positions with a target of 1.1414. A reversal of the Heikin Ashi indicator to the top will indicate a turn of corrective movement.

Buy positions are recommended to be considered not earlier than traders overcome the moving average line. In this case, the trend in the instrument will change to ascending, but this will most likely require fundamental factors that are not currently available.

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.