EUR/USD faces an uphill battle to recover Friday's substantial losses – Confluence Detector


EUR/USD has been on the back foot after the US reported more job gains than had been expected in June. Friday's Non-Farm Payrolls sent the greenback significantly higher. Can euro/dollar recovery? It faces several hurdles.

The Technical Confluences Indicator is struggling around 1.1220 which is the meeting point of the Pivot Point one-month Support 1, the previous hourly low, and the previous four-hour low.

Looking up, the world's most popular currency pair faces fierce resistance at a region spanning from 1.1261 to 1.1273. This is a cluster consisting of the Simple Moving Average 50-1h, the Fibonacci 38.2% one-week, the Bollinger Band 4h-Lower, the SMA 200-4h, the SMA 100-1d, the Fibonacci 61.8% one-month, and the Fibonacci 61.8% one-day.

Even higher, another considerable cap awaits at 1.1319 which is the confluence of the Fibonacci 38.2% one-month and the Fibonacci 61.8% one-week. 

Looking down, support awaits at 1.1161 where the previous monthly low, the PP 1d-S2, and the PP 1w-S1 converge.

Below, only weak support awaits at 1.1109 where the BB 1d-Lower, the PP 1d-S3, and the PP 1w-S2 await EUR/USD.

Here is how it looks on the tool:

EUR USD confluence analysis July 8 2019

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures