EUR/USD path of least resistance is down ahead of Non-Farm Payrolls, Powell – Confluence Detector
|EUR/USD has been retreating from the high levels it reached as US yields boosted the dollar. How is EUR/USD positioned ahead of the all-important Non-Farm Payrolls and the speech by Jerome Powell?
The Technical Confluences Indicator is showing that EUR/USD is struggling around 1.1042, which is a dense cluster of lines including the Simple Moving Average 515m, the Fibonacci 38.2% one-week, the Bollinger Band 15min-Upper, the BB 1h-Middle, the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-day, the SMA 10-1h, the SMA 10-15m, the SMA 10-4h, and the SMA 10-1d.
Looking up, robust resistance awaits at 1.1078, which is the convergence of the Fibonacci 38.2% one-month and the Pivot Point one-day Resistance 1.
Further above, there are additional confluences of resistance, with 1.1141 standing out, where the Fibonacci 61.8% one-month and the PP 1d-R3 meet.
Looking down, some support awaits at 1.1008, where we see the PP 1d-S1 and the Fibonacci 23.6% one-week converge.
The downside target is 1.0963, which is the confluence of the BB 1d-Lower and the previous monthly low.
All in all, resistance lines are stronger 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.