The pivot point is used as both support and resistance point at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for EUR/USD are: 1.2208 weekly; 1.2564 monthly.
The euro is located near the pivot weekly and bellow the Moving Average of 200 periods.
Accordingly, the pivot points signify the following:
1) If the price set by the pivot point is broken in an upward motion, the market is bullish and, conversely, if the pivot point is broken in a downward motion, the market is bearish.
2) They can provide points of market entry and exit that can be quite useful for trading strategy. For example, a limit sell order can be placed on a level support for open if this support is broken and can put the stop loss for this order in one of the resistances.
Signal For 23 - 27 July
Buy long 1.2070 with Take Profit at 1.2410 and with the Stop Loss at 1.2100 or Sell Short 1.240 with Take Profit at 1.2150.
____WEEKLY_____
Weekly - R3 = 1.2454
Weekly - R2 = 1.2388
Weekly - R1 = 1.2274
Weekly Pivot = 1.2208
Weekly - S1 = 1.2094
Weekly - S2 = 1.2028
Weekly - S3 = 1.1914
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____MONTHLY______
Monthly - R3 = 1.3301
Monthly - R2 = 1.3023
Monthly - R1 = 1.2842
Monthly Pivot = 1.2564
Monthly - S1 = 1.2383
Monthly - S2 = 1.2105
Monthly - S3 = 1.1924
