EUR/USD Intraday Technical Analysis and Trading Recommendations for March 23, 2012

Pivot Point: 1.3194.

Time Frame: H4

Overview:

The EUR/USD pair has broken the support level and turned towards the resistance level near the last week's point 1.3309 (March 2, 2012). Therefore, the pair has already formed a strong resistance at 1.3309. Moreover, having failed to close above 1.33, the pair started showing a bearish mood at this level. It is necessary to mention that these levels coincide with strong levels for bulls on the H4 chart; the pair has formed a strong resistance at the level of 1.3309. Thus, the pair will move downwards which is a convincing fact; the structure of the downside movement looks as non-corrective indicating a bearish possibility below 1.33. This can be a good sign to sell the pair below 1.33 with the first target at 1.3180 initiating a downtrend in order to continue the bearish mood towards the point 1.3122 and further to 1.3055. However, it should also be mentioned that the price is still between 1.3290 and 1.3003, as the RSI and the last strong support level are still able to begin a downtrend at this level. So the market indicates a bullish opportunity at the level 1.3 on H4 chart with the first target 1.3122 (Weekly Pivot Point) and continues towards 1.32.

Trading Recommendations:

According to the previous events, the price is still located between 1.3290 and 1.3.

Buy-deals above 1.3 with the targets seen at 1.2940 and 1.316 levels.
Below 1.33 look for further downside pace with the first target seen at 1.3020 and 1.2940 levels.

Technical Levels:

R3:1.3377
R2:1.3315
R1:1.3256
PP:1.3194
S1:1.3135
S2:1.3073
S3:1.3014

Observation (s):

Please, consider the market volatility before investing, as the sight price may has already been reached and scenarios invalidated.
Buyers are BIDding at a lower price.
Sellers are ASKing for a high price.