FX.co ★ EUR/USD: Technical Analysis for December 7, 2012

Weekly Pivot Point: 1.2964

Overview:
The EUR/USD pair has broken the support level and turned towards the resistance level today of 1.2964. Therefore, the pair has already formed a strong resistance at 1.2964. Moreover, it failed to close aove 1.2964 and started showing a bearish reaction at this level. It is necessary to mention that these levels coincide with strong levels for bears on H1 chart; the pair has also formed a strong resistance at the level of 1.2964. The pair will move downwards, it is convincing; the structure of the downside movement does not look corrective and is indicating a bearish opportunity below 1.2964. This can be a good sign for sell deals below 1.2964 with the first target at 1.2930 initiating an uptrend in order to continue the bullish mood towards the point of 1.2910 and further to 1.2880. If the trend breaks the weekly pivot point (1.2964), then the pair will go downwards to these targets. However, it should also be noted that the price is still between 1.2900 and 1.2980, as the last strong support level (1.2880) is still able to begin a uptrend at this level. Thus, the market indicates a bullish opportunity at the level 1.2880 on H1 chart with the first target at 1.2930 and continues towards 1.2970.

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.
Stop loss should NEVER exceed your maximum exposure amounts.
The market has a high volatile as usual if the last day had a huge volatility.

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.