Weekly technical levels:
Pivot point formula:
- Pivot point = (high (previous) + low (previous) + close (previous)) / 3
General idea about the pivot point.
- Resistance 3 and support 3 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 the sideways markets, as the prices are most likely to be located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. If trend breaks resistance or support through is likely to result in a significant price movement, it is also referred to as breakout.
Trading recommendations:
- The NZD/USD pair on March 4, 2014. The resistance is going to set at the level of 0.8450. Consequently, the descending movement will probably be lower than the 0.8453 level with the targets at 0.8370 and 0.8323. On the contrary, the support has already set at 0.8290. Furthermore, it should note that it will very profitable to buy above this level for retesting this level for a short period. Therefore, buy deals are recommended above the 0.8300 level with targets at 0.8375 and 0.8424 to reach the double top.
