Weekly technical levels:
General idea about the pivot point:
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 on the 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 and continue the movement. If the breaking news released may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
Overview:
The EUR/USD pair has broken major resistance at 1.3215. Moreover, it should be noted that the weekly pivot point is calculated at 1.3104 and it is now whisking away from it. Therefore, an upside movement will probably start in this area, and recovery will begin again. Thus, the market will indicate a bullish opportunity at the level of 1.3100, as well as it will be a good sign to buy at this spot with the first target at 1.3170 and continue towards 1.32105 in order to form a new top for July 22-26, 2013. On other hand, if a break in 1.2980 occurs, then it will be a good location for placing stop loss at the price 1.3060.
