FX.co ★ EUR/USD: Weekly Technical Levels March 5-9, 2012.

Weekly Technical Levels:

Tip (s):

Presently R3 and S3 can be considered as clear maximum range indicators of extreme volatility, though it is possible that they will be passed through.

Pivot lines work well in sideways markets as prices are expected to be located within the range between the R1 and S1 line.

As to the strong trend, the price will go downwards passing through the pivot point line and continue the movement.

In case of breaking news release, that may affect the market, price may go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.

Time Frame: H1.

It is recommended to place the Fibonacci retracement levels from the lower to the higher levels of the last week (With 120 candles. Each candle is formed in 1 hour on H1 chart, then: (120 candles * 1 hour) / 24 hours = 5 days from the 27th of February to the 2nd of March, 2012.) in order to determine the lower and higher price.

Average = (Higher - Lower) / 2
Average = 1.3332

• Range: 292 pips.
• The value of 50% Fibonacci retracement levels: 1.3332.
• 1.3480 a strong resistance level is expected to be formed.
• 1.2980 a strong support level is expected to be formed.
• Volatility:289.3.
• It is necessary to consider that the price remains between 1.30 and 1.33. The weekly pivot point is between 23.6% of Fibonacci retracement levels and 38.2%.
  

Observation (s):

• If the trend moves upwards, then the strength of the currency will be considred as following: EUR is an uptrend and USD is a downtrend.
• Most of thetraders use the Fibonacci retracement to determine accurately the support and resistance levels behaviour.
  
• Volatility Formulas: Variation = Average * (Higher - Lower).