USD/CAD Weekly and Monthly Pivot Points, For 19 - 23 December, 2011

Gerardo Porras

Forecast

The "pivot points" is a technique long applied by floor traders. The pivot points allow us to see objectively where the price in relation to how the price behaved in the past. In a nutshell is like a map that allows us to see the "feeling" of investors in the short and medium term.

The psychology behind this approach is simple. We know that for some reason, the market in previous sessions did not follow up or down at these levels. Do not know why we do not need to know. We only know the fact: the market shift in these levels.

Most importantly, this approach is that support and resistance levels are measured objectively, the price reversal above, then the odds indicate that at least those providing support or resistance levels.

The two tables provide the levels of weekly and monthly pivot. You can apply your strategy in the support or resistance levels.

____WEEKLY_____
Weekly - R3 = 1.0718
Weekly - R2 = 1.0571
Weekly - R1 = 1.0478
Weekly Pivot = 1.0331
Weekly - S1 = 1.0238
Weekly - S2 = 1.0091
Weekly - S3 = 0.9998

____MONTHLY______
Monthly - R3 = 1.1026
Monthly - R2 = 1.0775
Monthly - R1 = 1.0476
Monthly Pivot = 1.0225
Monthly - S1 = 0.9926
Monthly - S2 = 0.9675
Monthly - S3 = 0.9376

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