Weekly Pivot Point: 1.2408.
Time Frame: H1
Trading Recommendations:
Intraday Forecast
According to the previous events, the price is still located between 1.2410 and 1.2140.
Buy-deals are recommended above 1.2140 with the targets seen at 1.2325 and 1.24 levels.
Look for the further downward movement below 1.2550 with the first target seen at 1.2483 and 1.24 levels.
Overview:
The EUR/USD pair has broken the resistance level and turned towards the support level near the two year point of 1.2140 (June 6, 2010). Therefore, the pair has already formed a strong support at 1.2140. Moreover, having failed to close below 1.21, the pair started showing a bullish reaction at this level. It is necessary to mention that these levels coincide with strong levels for bulls on H1 chart; the pair has also formed a strong support at the level of 1.2140. So the pair will move upwards which is a convincing fact; the structure of the upside movement looks as non-corrective indicating a bullish opportunity above 1..2140. This can be a good sign for buy-deals above 1.2140 with the first target at 1.2325 initiating an uptrend in order to continue the bullish mood towards the point of 1.24 and further to 1.2550. If the trend breaks the weekly pivot point (1.2408), then the pair will go upwards in this level. However, it should also be noted that the price is still between 1.2408/1.2550 and 1.2140, as the Stochastic and the last strong resistance level are still able to begin a downtrend movement at this level. So the market indicates a bearish opportunity at the level 1.2550 on H1/H4 chart with the first target 1.2408 (Weekly Pivot Point) and continues towards 1.2350.
Observation (s):
- If the trend is ascending, then the strength of the currency will be defined as following: EUR is an uptrend and USD is a downtrend.
- Most of the traders use the Fibonacci retracement to determine accurately the psychological support and resistance levels.
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