Weekly technical levels of EUR/USD for May 12-16, 2014

General idea about the pivot point:

• Resistance 3 and support 3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in the sideways markets, as the prices are most likely to be located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. If trend breaks resistance or support through, it is likely to result in a significant price movement, it is also referred to as breakout.

Technical levels of the EUR/USD pair:

Forecast and review:

• The double top will set at the level of 1.3993 and the double bottom is going to be set at 1.3745 level.
• The price had hit the weekly pivot point, the resistance 2, the resistance 1 and the support 1 last week.
• The major support is going to set at 1.3670 on May 12, 2014.
• So, according to the previous events, the price of the EUR/USD pair is going to move between 1.3831 and 1.3673.
• We expect a range of 180 pips this week.
• The level of 1.3831 is representing the weekly pivot point. Therefore, it will be very useful to sell below the price of 1.3831 in the short term with the first target at 1.3745; but if the trend is able to break the double bottom at 1.3745, then it might resume to 1.3670

The material has been provided by InstaForex Company – www.instaforex.com