Weekly technical levels:
Notes:
- Support: 0.8840
- Resistance: 0.8950
- New range: 110 pips.
Pivot points general overview:
- 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 affects the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
Observations:
- If the trend is buoyant, then the strength of the currency will be defined as following: USD is in an uptrend and CHF is in a downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account.
- Fibonacci is in a trading range; it looks like the trend is trapping and going up or down. If you sell or buy in the long term, you will surely lose your profit.
- Stop loss should NEVER exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the last day had huge volatility.
