Friday saw an absolutely monstrous reversal range that showed EUR/USD on three different handles in one day. EUR/USD traded 1.31, 1.32, and 1.33 all in the same 24-hour period, which was also large enough to define the range for the whole week. So you will notice that the daily pivots and weekly pivots are exactly the same because Friday's high and low were also the high and low for the entire week.

We've been talking about the 1.0 projection from wave 2 at 1.3230, and the 1.618 Projection of wave 2 in the 1.3140 area all last week. The 1.0 at 1.3240 nailed the low post-NFP, which setup the 125 point rally. Then sellers stepped back in after news from the BOJ and put EUR/USD back through NFP levels, through 1.3240, and here we are on the Tokyo open trading 1.3145. I am long at 1.3145 with bids to buy more at 1.3135 and 1.3125 with the stop under 1.3100. If this is indeed the wave 4 low, wave 5 should carry up and through the 1.3360 highs.

Daily and Weekly Pivot Points

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.