Weekly Technical Levels:
Tip (s):
R3 and S3 are considered as clear indicators of the maximum range of extreme volatility though it is possible to pass them through.Pivot lines work well on sideways markets, as the prices are most likely to be located between the R1 and S1 line.
Within a strong trend the price is expected to be lower than the pivot point line and continue the movement.
In case of the breaking news release that may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.
Time Frame: H1 // H4.
Fibonacci retracement levels are to be replaced from the last week's lower levels (those of the 12th of February) to the higher levels (those of the 16th of February 2012) in order to determine the low and high price.
Average = (Higher - Lower) / 2
Average = 83.06
- Range: 212 pips.
- The value of 50% Fibonacci retracement levels: 83.06.
- At 85.40 a strong resistance is expected to be formed.
- At 81.00 a strong support is expected to be formed.
- Volatility: 1835.73. Thus, the market indicates the higher volatility level.
- It should be noted that the price remains between 81.90 and 84.40 levels.
Observation (s):
- If the trend is of upside character, then the strength of the currency will be defined as following: USD is an uptrend and JPY is a downtrend.
- Most of traders use the Fibonacci retracement to determine accurately the psychological level of support and resistance.
- Volatility Formulas: Variation = Average * (Higher - Lower).
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