After the EUR/USD plunged below 1.2000, it seems to be attempting a comeback. Will it succeed? The Technical Confluences Indicator shows that the pair faces a dense cluster of resistance lines on the way up. The 1.2010 level is the confluence of the Bolinger Band 15 minute Middle, the BB one-hour Middle, the Simple Moving Average-5-1hv, the Fibonacci 23.6% one-day, and more.
If a recovery pushes through this congestion area, the 1.2060 region is already packed with more substantial resistance levels: the SMA50-1h, the one-month low, the one-week low, the Pivot Point one-day R1, and more.
On the downside, the 1.1950 area is the confluence level of the Pivot Point one-day S1 and the Pivot Point one-month S1. Even lower, 1.1920 is the PP one-day S2.
All in all, there is more upside resistance than downside support.
Here is how it looks on the tool:
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.
Foreign exchange (forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.
investment objectives, risk appetite and the trader’ level of experience should be carefully weighed before entering the forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which is which it can’t afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market.
Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur.
Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.