Overview:
- The level of 1.1088 is going to form a coherent resistance this week. Moreover, it might be important to notice that the pivot point of the EUR/USD pair will be set at the price of 1.0941. Besides, the support was broken and turned into resistance last week. As a result, it will very profitable to sell at 1.1088 with a target at 1.0941 in the short term in order to test the first support. On the other hand, the best place to set stop loss should be above the weekly resistance 1 (1.1088).
Notes:
- Major support will be set at the price of 1.0852; and the double bottom has been already placed at 1.0795.
- Major resistance is going to be at 1.1088
- We expect a new range about 325 pips this week.
- If the trend is upward, then the strength of the currency will be defined as follows: EUR is in an uptrend and USD is in a downtrend.
Weekly technical levels of EUR/USD:
Review:
- The pivot point: resistance 3 and support 3 are considered to be clear indicators of the maximum range of extreme volatility, though it could pass them through. Pivot lines work well on 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 to continue moving. If released breaking news 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.
