10.01.201209:39 Forex Analysis & Reviews: EUR/USD Intraday Technical Analysis and Trading Recommendations for January 10, 2012.

Pivot Point: 1.2725.

Time Frame: H4

Overview:

The EUR/USD resistance has been broken and it has turned into support near the price of 1.3200 last two weeks, therefore the pair has already formed a strong resistance at 1.32, then 1.3075 has already acted as the second resistance. Moreover, after it had not managed to close above 1.32 aswell nor above 1.3075, and the pair had started showing a bearish market at these levels, 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 1.32. 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 1.3075, this can be a good sign to sell below 1.3075 with the first target at 1.3 and it will call for a downtrend in order to continue being bearish towards 1.29. However, it should also be noted that the price is still trapped between 1.3075 and 1.2870. As well as that the RSI and the last strong support (around the double bottom (1.2626) on H4 chart) are still calling for uptrend at this level. So the market indicates a bullish opportunity on level of 1.27 on H4 chart with the first target of 1.2971 and continues towards 1.3050.

Trading Recommendations:

According to recent events, the price has still been trapped between 1.3075 and 1.2670.

Buy above 1.27 with target at 1.2971 then 1.3075.
Below 1.3075 look for further downside with a first target of 1.3000 then 1.27.

Technical Levels:

R3: 1.2982
R2: 1.2884
R1: 1.2823
PP: 1.2725
S1: 1.2664
S2: 1.2566
S3: 1.2505

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.