The weekly technical analysis of EUR/USD pair:
- The The EUR/USD pair is still moving between 1.1351 and 1.1000 in the weekly chart. Thus, it should be noted that the weekly pivot point will set at the level of 1.1351. Right now, the current price is moving around the level of 1.1210. Moreover, the weekly point has already formed a psychological level in this area. Therefore, sell at the level of 1.1351 with the first target at 1.1160 (the level of 1.1155 represents the ratio of 00% Fibonacci retracement levels) , then it will call for a downtrend in order to continue its bearish movement towards 1.1017 to test the double top in the H1 chart. The stop loss should be placed at the level of 1.1375.
General idea about the pivot points:
- R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in sideways markets, as the prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line continuing its movement. If the breaking news released affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
The material has been provided by InstaForex Company – www.instaforex.com