The Pivot Point (PPV) is used as support and resistance at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for EUR/USD are: 1.2324 weekly; 1.2342 monthly.
The euro is located below the weekly pivot point and below the Moving Average of 200 periods.
Accordingly, the pivot points signify the following.
A daily close above the pivot point of 1.2324 can increase the probability of a rise to 1.2454 weekly resistance (W_R2). On the other hand, a close below the weekly pivot point will initiate a decline which could continue until 1.2264 (W_S1) and 1.2194 (W_S2). It is possible that at that level the pair may find a strong rebound.

Signal For 20 - 24 August 2012

Bearish Strategy

Sell short below 1.2324, take profit at 1.2264 and 1.2190, Stop Loss is above weekly pivot of 1.2324.

Bullish Strategy

Buy long above 1.2340, take profit 1.2394 and 1.2454, Stop Loss is below weekly pivot of 1.2324.

____WEEKLY_____
Weekly - R3 = 1.2524
Weekly - R2 = 1.2454
Weekly - R1 = 1.2394
Weekly Pivot = 1.2324
Weekly - S1 = 1.2264
Weekly - S2 = 1.2194
Weekly - S3 = 1.2134

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  ____MONTHLY______
Monthly - R3 = 1.3274
Monthly - R2 = 1.2977
Monthly - R1 = 1.2639
Monthly Pivot = 1.2342
Monthly - S1 = 1.2004
Monthly - S2 = 1.1707
Monthly - S3 = 1.1369