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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidates around 1.1150 amid mixed trade headlines

EUR/USD is trading around 1.1150, consolidating previous gains. President Trump has expressed optimism about clinching a deal with China, while some officials have cast doubts. Brexit headlines are set to impact the euro as well.

EUR/USD News

GBP/USD slides toward 1.29 ahead of critical vote on the Brexit deal

GBP/USD falling toward 1.29 as parliament is set to debate and vote on UK PM Johnson's Brexit deal. The vote on the program to complete the process quickly is also critical. 

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Brexit drama does not deter the pound

Despite an unending series of Parliamentary setbacks for Prime Minister Boris Johnson’s attempt to clinch the UK exit from the European Union, Sterling has retained almost all of its gains of the past ten days, suggesting that his Brexit deal will eventually be approved.

Read more

Gold edges up to $1490 area, lacks follow-through

Gold edged higher through the early European session on Tuesday and is currently placed at the top end of its daily trading range, around the $1489 region.

Gold News

Forex Majors

Cryptocurrencies

Signatures