I’m being somewhat facetious this morning when I say that the Euro is at a “pivotal level” as it is trading just around its daily pivot point. Under normal circumstances, there is usually volatility around this level as the market decides which way it wants to go. Consider this level to be a daily mid-point of the previous trading ranges.
With today’s news on the Euro zone meeting between France and Germany regarding the Euro debt crisis, the market is unsure what will take place. On the 1-hour chart, you can see that the pivot point level at 1.4385 has acted as both support and resistance in the past, and the possible bull pennant drawn on the chart looks to have broken down.
The stochastic reading at the bottom of the chart shows that the Euro is somewhat oversold, though not egregiously. So it looks like there is more room to the downside, with the pivot acting as short-term resistance, though that could change in a heart-beat should the meeting today produce some tangible results.