EUR/USD eyes 1.0974 as next upside target as EU mulls stimulus – Confluence Detector
|EUR/USD has been extending its gains, topping 1.09 after the US Senate approved a massive stimulus bill and as EU leaders are now working on a package to mitigate the fallout from coronavirus. How is the currency pair positioned?
The Technical Confluences Indicator is showing that euro/dollar faces resistance at 1.0934, which is the convergence between the Pivot Point one-day Resistance 1 and the previous 4h-high.
It is followed by 1.0974, which is a cluster of lines including the Fibonacci 61.8% one-month and the PP one-day R2.
Support awaits at 1.09, which is the confluence of the previous yearly low, the SMA 200-1h, and the SMA 50-4h.
A considerable cushion is at 1.0850, where the Fibonacci 23.6% one-month and the PP one-month S1 hit 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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