EUR/USD well supported, but can it rise? – Confluence Detector
|The EUR/USD traded in a narrow range on the US holiday and awaits big events today. While it has a lot of support, moving up may not be that easy?
The Technical Confluences Indicator shows that the pair has a lot of support at around 1.1645. The area is a congestion consisting of the following levels: the Fibonacci 38.2% one-week, the Bolinger Band 1h-Middle, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, the Simple Moving Average 200-1h, the Fibonacci 23.6% one-day, the SMA 100-4h, and the SMA 10-one-day.
If this support holds up, it does not necessarily mean an immediate rally. At 1.1664 we see a convergence including the Simple Moving Average 10-1h, the Bolinger Band 15m-Middle, the BB one-day-Middle, the Fibonacci 61.8% one-day, and the Bolinger Band 15m-Upper.
Further above, 1.1725 is the confluence of the Fibonacci 61.8% one-month and the Fibonacci 161.8% one-day. Even higher, 1.1766 which is the Pivot Point one-week Resistance 1 and the SMA 50-one-day.
On the downside, we see 1.1603 as a target as it is the meeting point of the Fibonacci 61.8% one-week and the Pivot Point one-day Support 2.
A low target is the 2018 low of 1.1508 which also converges with the Pivot Point one-month Support 1.
All in all, resistance lines are weaker than support lines.
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.