EUR/USD eyes 1.1862 as markets eye the ECB – Confluence Detector
|The EUR/USD managed to find its feet after the hawkish hike from the Fed, and it now faces the European Central Bank. What levels should we look out for?
The Technical Confluences Indicator shows that the EUR/USD is battling 1.1807 which is a dense cluster of technical levels including the Bollinger Band 15m-Middle, the 1d-high, the Simple Moving Average 200-4h, the SMA 5-15m, the SMA 10-15m, the Fibonacci 23.6% one-week and the SMA 10-1h.
Should the pair emerge as a winner from the battle, the next level to watch is 1.1862 which is the convergence of the Pivot Point one-week Resistance 1, the Bollinger Band one-day Upper, and the all-important Fibonacci 61.8% one-month. Much higher above, 1.1948 is notable for the Pivot Point one-week Resistance 2.
Looking down, strong support is at 1.1764 which is the confluence of the Bolinger Band 1h-Lower, the SMA 50-4h, the Fibonacci 61.8% one-day, and the Fibonacci 38.2% one-week.
Lower, the 1.1727 consists of robust lines such as the Bolinger Band 1d-Middle, the Fibonacci 61.8% one-week and the Fibonacci 38.2% one-month.
All in all, the path of least resistance is to the upside.
Here is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.