EUR/USD faces very tough resistance and will have a tough time recovering — Confluence Detector
The Technical Confluences Indicator shows that the EUR/USD faces several dense clusters of resistance while convergence areas of support are weaker and more spread out.
Around $1.1970, the pair faces the congestion of the Simple Moving Average 50-15m, the SMA 10-1h, the Fibonacci 61.8% one day, the Fibonacci 23.6% one-week, the SMA-5-4h, the Bolinger Band one-hour Middle (Standard Deviation 2.2), and the SMA100-15m.
Overcoming this line would send the pair to a tough confluence of resistance around the round number of $1.2000: the SMA5-one day, the one day high, the Fibonacci 38.2% one week, and the Pivot Point one-day Resistance 1.
On the downside, support awaits at $1.1910 with the Bolinger Band one-day Lower, the Pivot Point one-day Support 1, and the 1d-high. Lower, $1.1865 is the confluence of the Pivot Point one-week Support 1 and the Pivot Point one-day Support 2.
Here is how it looks on the tool:
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. This means 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.
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.
