EUR/USD path of least resistance is up on Fed Day – Confluence Detector
|EUR/USD has been grinding its way higher in cautious trading ahead of the all-important Fed decision, where a rate cut is on the cards. Can it continue higher? The technical setup is upbeat for the world's most popular currency pair.
The Technical Confluences Indicator shows that EUR/USD has solid support at 1.1150 where we see a dense cluster of lines including the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-day, the previous 4h-low, the Bollinger Band 4h-Middle, the Simple Moving Average 100-1h, the SMA 200-15m, the SMA 50-1h, the Fibonacci 61.8% one-day, and the SMA 5-1d.
Looking up, noteworthy resistance awaits at 1.1220 where the Pivot Point one-month Support 1 converges with the Bollinger Band one-day Middle.
Even higher, EUR/USD may target 1.1260 which is the meeting point of the Fibonacci 61.8% one-month and the SMA 200-4h.
Below 1.1150, the next cushion is at 1.1115 which is the confluence of the PP 1d-S3, the BB 1d-Lower, and the Fibonacci 161.8% one-day.
Further below, the downside target is 1.1057 where the PP 1m-S2 meets the price.
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.
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