EUR/USD approaching dense resistance cluster around $1.2330 — Confluence Detector
The Technical Confluences Indicator shows that the recent rise of the EUR/USD sends it to a price were several technical barriers converge around $1.2330, making it a strong line of resistance. The area is the meeting place of the Fibo 23.6% 1d, SMA50-4h, SMA50-1d, SMA200-1h, SMA 5-1hv, SMA10-1d, BB 15m-Middle-Stdv and more.
A break above this line opens the door to much higher levels with very few dense clusters on the upside. A notable confluence area is $1.2412, which is the meeting point of the one week high, Fibo 61.8% 1M, Pivot Point 1d R2 and the Bolinger Band 1d-Upper Stdv. All in all, these points are relatively weak, and the pair has a lot of room to rise.
Looking down, things are much busier, and any fall will find many cushions on the way down. Below immediate support levels, $1.2277 is a small cluster where the Fibo 23.6% 1M and the Fibo 61.8% 1d meet.
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. This means 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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
