This morning the EUR/USD pair was trading in the area of resistance, 1.3177. Last week it could not break it. Right now in minutes data on U.S. the existing home sales will be known, according to the data already published notice that sales of existing homes in the U.S. fell more than expected in June a 1.2 percent to an annual rate of 5.08 million from a revised 5.14 million in May, this data was enough to that the euro broke the area of 1.3177 and now must move to find the first weekly resistance of 1.3214. Now this level will be key to deciding whether the uptrend is strong, since it is expected a decline in this area to the levels of 1.3104, we recommend you operate according to pivot levels. Therefore, we see the following trading signals will be valid for all this week.
Signals for July 22-27, 2013
Sell in case of pullback 1.3214 (W_R1), take profit is at 1.3104 (W_PV), stop loss is above R1.
Buy if rebound is around 1.3104 (W_PV), take profit is at 1.3214 (W_R1), and 1.3288, stop loss is below 1.3050.
____WEEKLY_______
Weekly - R3 = 1.3398
Weekly - R2 = 1.3288
Weekly - R1 = 1.3214
Weekly Pivot = 1.3104
Weekly - S1 = 1.3030
Weekly - S2 = 1.2920
Weekly - S3 = 1.2846
____MONTHLY____
Monthly – R3 = 1.3759
Monthly – R2 = 1.3588
Monthly – R1 = 1.3298
Monthly Pivot = 1.3127
Monthly – S1 = 1.2837
Monthly – S2 = 1.2666
Monthly – S3 = 1.2376
According to monthly pivot levels, we note that the euro is above the pivot of 1.3127, if the pair closes in 4-hour charts below this level, a fall is more likely in the short run to the first monthly support 1. 2837, and up from 1.3127 it is expected to continue rising to the level of 1.3298.
If you would like to get this indicator, feel free to contact me via skype: gerardofx or email: gerardo.porras@analytics.instaforex.com
