The EUR/USD kicked off the week with a jump to the upside on the failure to form a populist government in Italy. The party may be premature.
The Technical Confluences Indicator shows that the 1.1708 level that the pair temporarily breached may reassert itself as a strong cap. It is the convergence of the Bolinger Band one-hour Middle (Stdv. 2.2), the Simple Moving Average 200-15m, the SMA 10-1h, the SMA 50-1h, and the Pivot Point one-day Resistance 1.
Upon a successful break higher, the next level of resistance is at 1.1763 which is the confluence of two important levels: the SMA 200-1h and the robust Fibonacci 61.8% one-week.
If the pair drifts back down, some support awaits at 1.1685, which is the Fibonacci 38.2% one-day and the Fibonacci 23.6% one-week.
However, the more substantial congestion of support lines is only at 1.1592 which is the confluence of three pivot points: the one-day S2, the one-month S3, and the one-week S1.
Here is how it looks on the tool:
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.
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.