FX.co ★ EUR/USD - Weekly and Monthly Pivot Points and Signals For October 22 - 27, 2012

The pivot points are important support and resistance levels. It serves to identify whether the price of the pair declines. Thus, the pivot points may quite successfully serve as input and output indicators. The way the pivot points are operated and the strategy is used depend on the type of an investor.
1.3017 and 1.2843 are weekly and monthly pivot points for this week for EUR/USD.
The euro is located above the weekly pivot point and above the Moving Average of 200 periods.
Accordingly, the pivot points signify the following.
The euro is trading a few pips above the weekly pivot near this level. It is likely to follow an upward move.
Moreover, below the weekly pivot, the bearish pressure can increase to support of 1.2894. It is the last very strong support that keeps the pair in the uptrend. If this pair is broken and the price closes below this level is likely to change the trend in the medium term. In the short term, the euro will remain bullish, a drop below 1.2750 could change the trend.

Signals for October 22 - 27, 2012

Buy long if it closes above weekly pivot at 1.3017, take profit at 1.3143 and 1.3266, and stop loss is below weekly support of 1.2768 (W_S2).

Buy if it rebounds around the support of 1.2894, take profit at 1.3017 and 1.3143, and stop loss bellow 1.2768 (W_S2).

____WEEKLY_____
Weekly - R3 = 1.3392
Weekly - R2 = 1.3266
Weekly - R1 = 1.3143
Weekly Pivot = 1.3017
Weekly - S1 = 1.2894
Weekly - S2 = 1.2768
Weekly - S3 = 1.2645

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____MONTHLY____
Monthly - R3 = 1.3856
Monthly - R2 = 1.3513
Monthly - R1 = 1.3186
Monthly Pivot = 1.2843
Monthly - S1 = 1.2516
Monthly - S2 = 1.2173
Monthly - S3 = 1.1846