EUR/USD path of least resistance remains up as it looks for a new direction – Confluence Detector
|The EUR/USD has erased its recovery and settled at the somewhat lower ground amid growing trade tensions. Where is it heading next?
The Technical Confluences Indicator shows that the pair is battling the 1.1722 - 1.1734 area where it is hugged by a congestion of many levels. These include the Simple Moving Average 5-one-day, the Fibonacci 38.2% one-day, the Fibonacci 61.8%, the Bolinger Band 15m-Lower, the Fibonacci 23.6% one-week, the SMA 515m, and the SMA 5-4h.
Should the pair give in to pressure and fall, the next substantial confluence of support is at 1.1704 which is the confluence of the Fibonacci 38.2% one-week, the Pivot Point one-day Support 1, and the Bolinger Band 1h-Lower.
Below, 1.1661 may provide support as it is the meeting point of the Fibonacci 61.8% one-week and the Pivot Point one-day Support 2. Yet a firm cushion is only at 1.1594 which is where the Fibonacci 23.6% one-month and the one-week low converge.
On the topside, 1.1807 is the first target with the convergence of the Fibonacci 161.8% one-day, the Pivot Point one-week Resistance 1 and the Pivot Point one-day Resistance 2.
Even higher, 1.1860 remains a target as the meeting point between the Pivot Point one-month Resistance 1 and the one-month high.
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.