Weekly Pivot Point: 1.3017
Overview:
The EUR/USD pair has broken the resistance level and turned towards the support level near the two-month point of 1.2903. Therefore, the pair has already formed a strong support at 1.2803 / 1.2894. Moreover, having failed to close below 1.2900 yesterday, the pair started showing a bullish reaction at this level. It is necessary to mention that these levels coincide with strong levels for bulls on H4 chart; the pair has also formed a strong support at the level of 1.2803 / 1.2894. The pair will move upwards, it is convincing; the structure of the upside movement does not look corrective and is indicating a bullish opportunity above 1.2803. This can be a good sign for buy deals above 1.2803 / 1.2894 with the first target at 1.2970 initiating an uptrend in order to continue the bullish mood towards the point of 1.3015 and further to 1.3130. If the trend breaks the weekly pivot point (1.3017), then the pair will go upwards to these targets. However, it should also be noted that the price is still between 1.3090 and 1.2955, as the last strong resistance level (1.3140) is still able to begin a downtrend at this level. Thus, the market indicates a bearish opportunity at the level 1.3140 on H4 chart with the first target at 1.3090 and continues towards 1.3000.
Weekly Pivot Points:
R3: 1.3392
R2: 1.3266
R1: 1.3143
PP: 1.3017
S1: 1.2894
S2: 1.2768
S3: 1.2645
Observation (s):
If the trend is ascending, then the strength of the currency will be defined as following: EUR is an uptrend and USD is a downtrend.
Most of the traders use the Fibonacci retracement to determine accurately the psychological support and resistance levels.
Stop loss should NEVER exceed your maximum exposure amounts.
The market has a high volatile as usual if the last day had a huge volatility.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
The material has been provided by Instaforex Company - instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/USD: Technical Analysis for October 24, 2012 . Thanks for your support on EUR/USD: Technical Analysis for October 24, 2012
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