Traders and market makers have been using pivot points for years to determine critical support and/or resistance levels. Pivots can be especially popular in the FX market since many currency pairs do tend to fluctuate between certain levels. Range-bound traders will enter a buy order near identified levels of support and a sell order when the asset nears the upper resistance. Pivot points also enable trend and breakout traders to spot key levels that need to be broken for a move to qualify as a breakout. Furthermore, these technical indicators can be very useful at market opens.
Source: http://www.gftforex.com/; http://www.investopedia.com/articles/forex/05/FXpivots.asp; http://www.bktraderfx.com/site/members-benefits
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