FX.co ★ Weekly technical levels of EUR/USD for January 20-24, 2014

Idea about pivot point:

• To identify the pivot point and its resistance/support levels, you should use historic rates to determine future prices. It means to use the previous period's high, low and close to formulate future resistance and support. So, the pivot point is an orbit among three up levels that are referred to resistances and three down levels they are referred to supports. The pivot point is especially useful for the short term as well as it is also to be used to range or/and breakout. In this technical analysis we will know more about standard pivot point, Fibonacci pivot point, Camarilla pivot point and Woodie pivot point.

Intraday trading recommendations:

• According to previous events, the EUR/USD pair has still been trapped between 1.3585 and 1.3516. The level of 1.3471 will indicate strong support. We expect that the level of 1.3471 will form a new double bottom at this price. Therefore, it will be of the foresight to buy at 1.3471 with the first target at 1.3585 (the weekly pivot point), then it will continue towards 1.3625. The stop loss should be placed below 1.3450.