Weekly Technical Levels:
Tip (s):
R3 and S3 can be considered as clear indicators of the maximum range of extreme volatility that takes place during these days, though they can be passed through.
Pivot lines' activity remains strong in sideways markets as prices are most likely to be located within the R1 and S1 range.
In a strong trend the price is expected to decline passing through the pivot point line and continue the movement.
The price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3 in case of the breaking news release.
Time Frame: H1.
Place the Fibonacci retracement levels from the lower to the higher levels of the last week (For 120 candles, each candle is formed in 1 hour on H1 chart, then: (120 candles * 1 hour) / 24 hours = 5 days from the 27th of February to the 2nd of February, 2012.) in order to determine the lower and the higher price.
Average = (Higher - Lower) / 2
Average = 108.57
- Range: 276 pips.
- The value of 50% Fibonacci retracement levels: 108.57.
- 112.40 a strong resistance level is expected to be formed.
- 105.25 a strong support level is expected to be formed.
- Volatility:4908.77.
- It should be mentioned that the price remains between 106.15 and 110.05; the weekly pivot point is located between 38.2% of Fibonacci retracement levels and 50%.
Observation (s):
- If the trend goes upwards, the strength of the currency will be defined as following: EUR will remain in the uptrend and JPY in the downtrend.
- Most of the traders use the Fibonacci retracement to determine accurately the behaviour of support and resistance levels.
- Volatility Formulas: Variation = Average * (Higher - Lower).
