Pivot Point: 1.3127.
Time Frame: H4
Overview:
Last week (December 24 - 28, 2011) the EUR/USD resistance level was broken and turned to support level near the price of 1.3200. Therefore, the pair has already formed a strong resistance level 1.32.Moreover, having failed to close higher than the level 1.32 the pair indicated a bearish movement. It is necessary to mention that these levels coincide with strong bullish movement on the H4 chart. The pair acquired a strong resistance at 1.32.
So the pair movement will be provided by the downside momentum which is quite convincing and the character of the descending motion appears to be non-corrective, indicating a bearish possibility below the level 1.3215 (Support 2). It can be considered a good sign for SELL-deals at level 1.3215 with the first target at the 1.3020 level and is likely to initiate the downtrend. Then the bearish tendency to the 1.2940 level is expected to be continued.
However, it should also be mentioned that the price is still between the levels 1.3215 and 1.2810. The RSI and the last strong support levels can still initiate the upward trend. So the market indicates a bullish opportunity at level 1.299 on H4 chart with the first target of 1.3127 (Pivot point) continuing to the 1.32 level.
Trading Recommendations:
Taking into account the previous events, the price is still between 1.32 and 1.2850.
BUY-deals are recommended above the 1.299 level with target at 1.313 and then at 1.32.
Below 1.32 look for further downside pace with the first target of 1.3020 and then of 1.2940.
It is possible that the pair will turn to downward movement from the level 1.32 with the first targets at levels 1.3020 and 1.2940.
Technical Levels:
R3:1.3248R2:1.3215
R1:1.3160
PP:1.3127
S1:1.3072
S2:1.3039
S3:1.2984
Observation (s):
Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Buyers are BIDding at a lower price.
Sellers are ASKing for a high price.
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