EUR/USD faces little resistance all the way to 1.1780 — Confluence Detector


The EUR/USD is already 200 pips off the lows and in a recovery that cannot be described as a dead cat bounce. Where next? 

The Technical Confluences Indicator shows that the pair faces only weak cluster of resistance on the way up. The 1.1710 to 1.1720 level features a confluence of several lines: the Fibonacci 38.2% one-week, the 15m high, and the Simple Moving Average one-day. 

However, more serious resistance awaits only at 1.1780. This is the convergence of the Simple Moving Average 100-4h, the Pivot Point one-day Resistance 2, and the Pivot Point one-week Resistance 1. 

Should the pair break higher, more serious resistance is only around 1.1825 which is the meeting point of the Pivot Point one-month Support 2 and the one week high.

On the downside, some support awaits at 1.1690, which is the confluence of the SMA 10-15m, the SMA 50-4h, and the Fibonacci 23.6% one-week. 

Yet the most substantial support level is only at 1.1647 which is the congestion of the one-month low, the one-week low, the SMA 100-15m, the Fibonacci 23.6% one-day, the 4h high, and the Bolinger Band 15 minute Lower. 

Here is how it looks on the tool:

EUR USD May 31 confluence levels technical

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD trades firmer above 1.1300 amid upbeat market mood

EUR/USD holds the higher ground above 1.1300, as the risk-on mood weighs on the US dollar. The shared currency will remain at the mercy of the broader market sentiment as the data docket is light on Monday. 

EUR/USD News

GBP/USD off highs, around 1.2650 ahead of BOE’s Bailey

GBP/USD trims gains to trade around 1.2650 in early Europe. UK Chancellor Sunak prepares another aid package, Michael Gove pushes to prepare for Brexit. Significant differences prevail in the post-Brexit talks. BoE’s Bailey to speak later today.

GBP/USD News

Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

FX Today: Vaccine, earnings optimism downs the dollar; eyes on COVID-19 stats, BOE’s Bailey

The risk-on sentiment emerged as the main market driver starting out the week, amid a quiet Asian affair, in the absence of relevant macro news. US dollar remained on the back foot, as the coronavirus vaccine optimism continued to dull its safe-haven appeal.

Read more

WTI: 200-HMA probes bears above $40.00

WTI stays pressured beyond $40.00 despite multiple bounces off 200-HMA. MACD conditions suggest bears rolling up their sleeves for entry. Bulls will have multiple upside barriers beyond $41.00.

Oil News

Forex Majors

Cryptocurrencies

Signatures