Monthly Pivots and Weekly Pivots are powerful reversal levels in FX. A Case Study example of how to build a Trade Plan around Monthly Pivots has played out this AM in the New York Session. I break it down here for your review and include the EURUSD Weekly Pivots below as well.

STEP ONE – BUILDING A TRADE PLAN AROUND MONTHLY PIVOTS

  • THE MONTHLY PIVOT IS HIT AND ACTS AS SUPPORT OR RESISTANCE
  • THE CHART BELOW SHOWS MONTHLY M3 ACTING AS RESISTANCE IN NY THIS AM, WHICH SENT PRICE IN A BEARISH DIRECTION.
  • THIS TRAD PLAN IS A CONTINUATION PATTERN, SO WE ARE LOOKING FOR A PULLBACK TO GIVE US THE BEST VALUE FOR OUR ENTRANCE. YOU CAN SEE IN THIS CHART THAT THE PULLBACK HAS INITIATED, AFTER THE INITIAL BEARISH MOVE.

EURUSD MM3 RESISTANCE

STEP TWO – BUILDING A TRADE PLAN AROUND MONTHLY PIVOTS

  • THIS NEEDED PULLBACK FOUND RESISTANCE AT THE 61.8 FIBONACCI RETRACEMENT LEVEL (WHICH IS OUR 5 MIN CANDLE DOUBLE TOP ENTRANCE TARGET) AND FELL FROM THERE.. (SEEN BELOW)

M3 W FIB

BELOW ARE THE EURUSD MONTHLY PIVOTS TO PLOT ON YOUR CHARTS…

MR2   1.1582

MM4  1.1405

MR1    1.1227

MM3   1.1124

MPP    1.1021

MM2   1.0843

MS1     1.0665

MM1   1.0562

MS2     1.0459

EURUSD MONTHLY PIVOTS

HERE ARE EURUSD WEEKLY PIVOTS AS WELL…  THE TRADE PLAN ABOVE WORKS AROUND WEEKLY PIVOTS AS WELL…

WR2   1.1459

WM4  1.1381

WR1    1.1304

WM3   1.1184

WPP    1.1063

WM2   1.0986

WS1     1.0908

WM1   1.0788

WS2     1.0667

EURUSD WEEKLY PIVOTS

Kind Regards,

Tyler Lund

US DOLLAR ANALYST, FOREX.TODAY

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