EUR/USD eyes levels above 1.1500 after Democrats win the House – Confluence Detector

Yohay Elam FXStreet

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:

EUR USD confluence post Mid Terms November 7 2018

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.

Learn more about Technical Confluence

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.

USD/JPY stays below 160.50 as markets assess BoJ decision

USD/JPY fluctuates in a relatively narrow range above 160.00 on Tuesday as markets assess the Bank of Japan's (BoJ) decision to raise the policy rate by 25 at the June meeting. Meanwhile, investors keep a close eye on news coming out of the Middle East, while preparing for the critical Fed meeting.

AUD/USD struggles for direction, still below 0.7100

AUD/USD looks to extend Monday’s recovery, although a challenge to the 0.7100 barrier remains elusive ahead of the opening bell in Asia. The Aussie Dollar was unable to take advantage of the RBA's relatively cautious message, which included keeping its OCR unchanged at 4.35% and leaving the possibility of further tightening in the future.

Gold: $4,000 or $4,500? The Fed may decide Gold’s next big move

Gold now surrenders part of its initial advance and recedes to the vicinity of the $4,350 mark per troy ounce on Tuesday. The early enthusiasm sparked by the US-Iran peace deal has faded somewhat, prompting investors to adopt a more prudent stance as they await further details of the agreement and key guidance from the Fed.

XRP pulls back as subdued ETF inflows, layered resistance cap upside

Ripple (XRP) remains elevated above $1.23 at the time of writing on Tuesday, struggling amid a capped upside. Despite an improved overall market sentiment driven by news of a peace agreement between the United States and Iran to end the war in the Middle East, capital inflows remain notably subdued.

1% rate, 160 Yen: Why Japan’s historic hike changed little

The Bank of Japan (BoJ) pushed its short-term policy rate to 1% on Tuesday, the highest setting since 1995 and a 31-year milestone in a normalization cycle barely two years old. It is the kind of number that should mark a turning point for the Yen, and it did almost nothing.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.