EUR/USD eyes levels above 1.1500 after Democrats win the House – Confluence Detector
The EUR/USD is trading near the highest levels in two weeks after Democrats secured a victory in the House after a dramatic election night. Republics hold onto the Senate. The split government weighs on the US Dollar. What's next for the pair?
The Technical Confluences Indicator shows that the EUR/USD is facing its first cluster of resistance lines only above 1.1500, at 1.1506. This is the convergence of the Fibonacci 61.8% one-month and the Pivot Point one-month Resistance 1.
Further above, the next level to watch is 1.1553 where we note the confluence of the Fibonacci 161.8% one-week and the Simple Moving Average 50-one-day.
Looking down, the first substantial meeting point of technical levels is at 1.1440 where we see the Simple Moving Average 10-1h, the previous day's high, and the Pivot Point one-day Resistance 1.
Close by, 1.1428 is already a considerable cushion where the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-day, the SMA 10-4h, and the Fibonacci 38.2% one-day converge.
Lower, 1.1398 is the meeting point of the PP one-day S1, the previous 4h low, and the Fibonacci 61.8% one-week.
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.
