During the European session the euro reached the level of 1.34. This morning during the American session the pair is in overbought zone and for the next few hours there may be an important correction of the pair, according to technical analysis. The weekly pivot of 1.3241 is the key level, because there may be an upward bounce. On the other hand, if the pair closes below this level, the downward pressure would rise to the level of support, 1.3117. Given that the pair has broken the resistance level of 1.33, we expect the pair to continue its upward sequence the psychological level of 1.35. Therefore, we consider that the following signal will have validity for the whole week.
Signals for January 14 - 19, 2012
Sell if it closes bellow 1.3212 (W_PPV), take profit is at 1.3118 and stop loss is above weekly resistance (W_R1) at 1.3282.
____WEEKLY_______
Weekly - R3 = 1.3815
Weekly - R2 = 1.3590
Weekly - R1 = 1.3466
Weekly Pivot = 1.3241
Weekly - S1 = 1.3117
Weekly - S2 = 1.2892
Weekly - S3 = 1.2768
If you would like to get this indicator, feel free to contact me via e-mail: gerardo.porras@analytics.instaforex.com
____MONTHLY____
Monthly – R3 = 1.3810
Monthly – R2 = 1.3559
Monthly – R1 = 1.3377
Monthly Pivot = 1.3126
Monthly – S1 = 1.2944
Monthly – S2 = 1.2693
Monthly – S3 = 1.2511
