EUR/USD eyes 1.1527 after surging from the double-bottom – Confluence Detector
The EUR/USD almost hit a new 2018 trough earlier in the week but bounced quite impressively and created a double-bottom at 1.1300. Trump's positive attitude on trade with China certainly helped. What's next for the pair?
The Technical Confluences Indicator shows that the EUR/USD is currently struggling within the 1.1420-1.1432 range. where we see the convergence of the Bollinger Band 15min-Upper, the previous hourly high, the BB one-hour Upper, and the Fibonacci 38.2% one-month.
Some resistance awaits at 1.1475 where we see the confluence of the Fibonacci 61.8% one-week, the Simple Moving Average 100-4h, and the Bollinger Band one-day Middle.
1.1503 is another hurdle. We see the Pivot Point one-day Resistance 2 and the Fibonacci 61.8% one-month converge.
The ultimate target is 1.1527 which is the meeting point of the Pivot Points one-month R1, and one-week R1.
Support awaits at 1.1384 where we see a cluster of lines including the Fibonacci 38.2% one-day, the Bollinger Band 1h-Lower, and the BB 15 minutes Lower.
A more significant support line is just above 1.1300, at 1.1306 where we see the confluence of yesterday's low, the BB 4h-Lower, the PP one-month Support 1, and the BB one-day Lower.
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.
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.
