EUR/USD finds strong support after the correction – Confluence Detector
EUR/USD dropped from the highs following the upbeat US GDP report. Is it ready to rise? Significant support awaits the pair, opening the door to the upside.
The Technical Confluences Indicator shows that euro/dollar enjoys significant support at 1.1352 where we see a dense cluster including the Simple Moving Average 10-one-day, the Bollinger Band 4h-Lower, the BB 1d-Middle, the Fibonacci 23.6% one-week, the BB 1h-Lower, the SMA 200-1h, and the SMA 50-4h.
A bit lower, EUR/USD enjoys another support line: at 1.1335 we see the confluence of the Fibonacci 38.2% one-month, and the Fibonacci 38.2% one-week.
Resistance awaits the pair at 1.1395 which is the convergence of the SMA 100-1d and the Fibonacci 61.8% one-month.
1.1475 is the upside target where we see the meeting point of the Pivot Point one-day Resistance 3 and the PP one-week Resistance 3.
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. 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.
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.
