4-hour timeframe

Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: -25.7507

The EUR / USD currency pair on Tuesday, October 16, remained between the moving average line and Murray's 6/8 level. We can say that the markets are waiting for the EU summit, which will be held a new round of talks between EU and UK leaders regarding the conditions of Brexit. It should also be noted that in recent days, traders have not received any important information, including macroeconomic reports. Yesterday in the United States, not too significant report on industrial production was published. However, the deviation from the forecast was minimal (0.3% vs. 0.4%). On Wednesday, October 17, the consumer price index for September will be published in the eurozone. The forecasts are absolutely neutral and do not differ from the values of the previous month (2.1% y / y). Thus, a more or less serious deviation from the forecast can cause an increase in instrument volatility. However, most likely, traders will continue to trade calmly. But as information comes from the EU summit, bursts of activity are possible and even the formation of a new trend. Everything will depend on the nature of the incoming information. At the moment, despite a lot of rumors about successful negotiations between London and Brussels, there is no official information confirming the progress in the negotiations.

Nearest support levels:

S1 - 1,1536

S2 - 1,1475

S3 - 1.1414

Nearest resistance levels:

R1 - 1.1597

R2 - 1.1658

R3 - 1.1719

Trading recommendations:

The EUR / USD currency pair, having failed to overcome the level of 1.1597 for the third time, started a new round of correction and worked out the moving. It is recommended to open long positions, thus, if traders overcome the level of 1.1597, with the target of 1.1658.

Sell positions will become relevant only after the price is fixed below the moving average. This will require negative information on the progress of negotiations on Brexit. The goal, in this case, will be the Murray level of "4/8" - 1.1475.

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 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.