The euro has touched the maximum 1.3705 this morning in the American session for the first time in 14 months. It falls as part of a correction from last week’s maximum and begins taking short-term downtrend against the dollar, after the break at 1.3570, a trendline, which could even accelerate downward. If you look at the chart below, the pair had an opening week above the weekly pivot, but now this morning, this pair is trading below 1.3587 weekly pivot. If the pair closes the day below this level, it should be considered as a bearish signal and we can sell this pair. Therefore, we consider that the following signal will have validity for the whole week.
Signals for February 04 - 09, 2013
Sell if it closes bellow 1.3587 (W_PPV), take profit is at 1.3465 and 1.3290 and stop loss is above weekly resistance (W_R1) at 1.3762.
Buy if it rebounds above at 1.3501 (W_PPV), take profit is at 1.3710 and stop loss is below 1.3465 (W_S1).
____WEEKLY_______
Weekly - R3 = 1.4059
Weekly - R2 = 1.3884
Weekly - R1 = 1.3762
Weekly Pivot = 1.3587
Weekly - S1 = 1.3465
Weekly - S2 = 1.3290
Weekly - S3 = 1.3168
If you would like to get this indicator, feel free to contact me via e-mail: gerardo.porras@analytics.instaforex.com
____MONTHLY____
Monthly – R3 = 1.4378
Monthly – R2 = 1.3985
Monthly – R1 = 1.3782
Monthly Pivot = 1.3389
Monthly – S1 = 1.3186
Monthly – S2 = 1.2793
Monthly – S3 = 1.2590