FX.co ★ EUR/USD Intraday Technical Analysis and Trading Recommendations for January 4, 2012.

Pivot Point: 1.3020.

Time Frame: H4

Overview:

The EURUSD's resistance has been broken and it has turned into support near the price of 1.3200 last week (24 - 28 of December, 2011), therefore the pair has already formed a strong resistance at 1.3215. Moreover, after it had not managed to close above 1.3216 and the pair had started showing a bearish market at this level, it became notable that these levels coincide at strong levels for bulls on H4 chart, and the pair formed a strong resistance at the level of 1.3215. So the pair will have a downside momentum which is rather convincing and the structure of the downfall looks non-corrective, in order to indicate a bearish possibility below 1.3215, this can be a good sign to sell below 1.3215 with the first target at 1.3020 and it will call for a downtrend in order to continue being bearish towards 1.2940. However, it should also be noted that the price has still been trapped between 1.3215 and 1.2850. As well as that the RSI and the last strong support (around the double bottom (1.2857) on H4 chart) are still calling for uptrend at this level. So the market indicates a bullish opportunity on level of 1.2857 on H4 chart with the first target of 1.2940 (Pivot point), and continues towards 1.3020.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.32 and 1.2850.

Buy above 1.2855 with target at 1.2940 then 1.31.
Below 1.32 look for further downside with a first target of 1.3020 then 1.2940.

Technical Levels:

R3: 1.3253
R2: 1.3164
R1: 1.3109
PP: 1.3020
S1: 1.2965
S2: 1.2876
S3: 1.2821

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.

Buyers are BIDding at a lower price.

Sellers are ASKing for a high price.