Trading recommendations:
- According to the previous events, the EUR/USD pair is still trading between the levels of 1.1180 and 1.0977. Moreover, it should be noted that the market was not stable and the trend was not very clear (sideways trend). We expect a range around 203 pips in coming days. Additionally, the value of 100% Fibonacci retracement level is 1.1215, for that the key level of 1.1215 (the double top) is represented to confirm the bearish market. Therefore, sell deals are recommended below the levels of 1.1215/1.1180 with targets at 1.1010 and it will resume a rally towards 1.0977 to retest the psychological level in order to test the weekly support 1 on July 13, 2015.
The weekly technical analysis of EUR/USD pair:
Summary of pivot point:
- R3 and S3 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 on the sideways markets as prices are most likely to be located between the R1 and S1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news affect the market, the price is likely to go straight through R1 or S1 and even reach R2 and R3 or S2 and S3.
