4 hour timeframe

Technical details:

Senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

SCI: -151.2247

The currency pair EUR / USD on Monday, November 12 continues the downward movement as if nothing had happened. After the technical correction was completed near Murray's "4/8" level, the drop in quotes does not stop for a minute. It is now even difficult to say whether the situation with the Brexit or the budget crisis in Italy continues to influence the trading strategy of traders or the US dollar is already bought by inertia.

From a technical point of view, everything is simple: all indicators are pointing down, Heiken Ashi paints the bars in blue. All conditions for sell orders there. Heiken Ashi's turn up - a round of correction. From a fundamental point of view, no important macroeconomic publications are scheduled for Monday either in the United States or in the European Union. However, there is every reason to assume that this will not confuse traders at all. For example, at the Asian trading session, we observed a rather strong drop in the pair. In the current conditions, the only real reason for the strengthening of the US currency, from our point of view, can be called Brexit. Just a few hours ago, it became known that Brussels rejected Theresa May's proposal that the UK should remain in the customs union after Brexit. However, this proposal was not accepted and May herself later canceled an emergency meeting of the Cabinet of Ministers at which the vote for the Brexit bill. It looks like a very bad sign.

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 EUR / USD currency pair continues its downward movement and has completed the level of 1,1292. In case of overcoming this target, the target will be the level of 1.1230. Before turning Heiken Ashi upstairs, you can keep your shorts open.

Buy positions are recommended to open no earlier than fixing the price above the moving average line. However, as we have already seen several times, the positions of the bulls are now extremely weak and there are no fundamental reasons for the rise of the euro.

In addition to the technical picture, you should also consider the fundamental data and the time of their release.

Explanations for illustrations:

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

The junior linear regression channel is the purple lines of 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.

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