EUR/USD – 4H.
As seen on the 4-hour chart, the EUR/USD pair continues the process of falling and made a consolidation under the correction level of 38.2% (1.1066) on the new grid of Fibo levels. Thus, I expect the pair's quotes to continue falling towards the next Fibo level of 50.0% (1.1030). Emerging divergences are not observed today in any indicator, so there are no visible barriers to a further decline of the pair. Going beyond the trend channel also works in favor of continuing the fall of quotations.
While the euro/dollar currency pair "enjoys" the information lull, the investigation of Donald Trump's activities against Kyiv continues in America. Without going into all the political details, which still have no reflection on the charts of any pair with the US dollar, we can say that there is no unambiguous evidence that President Trump conducted illegal actions against Ukraine and its President Zelensky. The conversation with Vladimir Zelensky regarding Joe Biden and his activities in Ukraine can be interpreted in different ways, but it is unlikely that all this will lead to the fact that the Senate, in which the majority of votes belongs to the Republicans, will approve the impeachment of Trump. This story gets its development only thanks to Democrats, who benefit from any desecration (even well-deserved) of the personality of Donald Trump before the election. Especially after Trump himself wanted to find ways to cast a shadow on his main rival in the race for the presidency. Thus, news on this topic continues to occupy traders, but only at the time that there are no important economic reports. The euro currency now, it seems, does not particularly need economic reports. Yesterday, business activity in the services industries of Europe showed positive dynamics, but still did not find reflection on the chart of the euro/dollar pair.
Today, the situation is even more prosaic. Not a single important economic report on the calendar. The information lull will continue.
Forecast for GBP/USD and trading recommendations:
On November 7, traders will most likely continue calm sales of the pair. I am waiting for such a development of events, as the closure was performed under the Fibo level of 38.2%. There is no information background. What is left to pay attention to in such a situation? Only on graphics and technology. Thus, I expect a fall to the correction level of 1.1066 and recommend selling the pair with this target and the stop-loss order above the level of 38.2%.
The Fibo grid is based on the extremes of October 1, 2019, and October 21, 2019.
