EUR/USD faces fierce upside resistance – Confluence Detector
|EUR/USD is stabilizing around 1.1300 at the wake of a busy week that includes the all-important Fed decision. Where next?
The Technical Confluences Indicator shows that euro/dollar is currently stuck at around 1.1312 where we see a cluster including the Bollinger Band 15-minute Upper, the previous 4h-high, the BB 15-minute lower, the Fibonacci 38.2% one-day, the BB 15-minute Middle, and the Fibonacci 23.6% one-week.
The most substantial hurdle is around 1.1347 which is a convergence of the Fibonacci 38.2% one-week, the Bollinger Band 4h-Middle, the Simple Moving Average 100-1h, the SMA 5-one-day, and the SMA 100-4h.
Looking down, some support awaits at around 1.1288 which is the meeting point of the BB one-day Lower, the BB 4h-lower, and the BB1h-Lower. It is only a weak support line.
A considerable cushion is only at 1.1215 which is where 2018 low meets the Pivot Point one-day Support 2.
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.