Pivot Point: 1.2982.
Time Frame: H4
Overview:
The EURUSD's resistance was broken and it turned into support near the price of 1.3200 last week (24 - 28 of December, 2011), therefore, the pair has already formed a strong resistance at 1.32. Moreover, after it did not manage to close above 1.32 and the pair started showing a bearish market at this level, it became notable that these levels coincide at strong levels for bulls on H4 chart, and the pair formed a strong resistance at the level of 1.32.
So the pair will have a downside momentum which is rather convincing and the structure of the downfall looks non-corrective, in order to indicate a bearish possibility below 1.3215, this can be a good sign to sell below 1.3215 with the first target at 1.3020, and it will call for a downtrend in order to continue being bearish towards 1.2940. However, it should also be noted that the price is still been trapped between 1.3215 and 1.2810. As well as that the RSI and the last strong support are still calling for uptrend at this level. So the market indicates a bullish opportunity at the level of 1.2845 on H4 chart with the first target of 1.2982 (Pivot point), and continues towards 1.305.
Trading Recommendations:
According to previous events, the price is still trapped between 1.32 and 1.2850.
Buy above 1.2810/1.2845 with target at 1.2940 then 1.316.
Below 1.32 look for further downside with a first target of 1.3020 then 1.2940.
Technical Levels:
R3: 1.3271
R2: 1.3161
R1: 1.3092
PP: 1.2982
S1: 1.2913
S2: 1.2803
S3: 1.2734
Observation (s):
Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Buyers are BIDding at a lower price.
Sellers are ASKing for a high price.
