Pivot point and the associated support and resistance levels are calculated using the last trading session open, high, low and close. Since Forex is a 24-hour market, traders use time on the closing of New York 4:00 pm EST as the previous day's close.

The calculation for a pivot point:
Pivot point PP = (High + Low + Close) / 3

Resistance and support levels are then calculated off the pivot point like this:
1st level resistance and support:
1st support S1 = 2*PP – High
1st resistance R1 = 2*PP – Low
2nd level of resistance and support:
2nd support S2 = PP – High – Low
2nd resistance R2 = PP + High - Low