EUR/USD goes back to school and could go down – Confluence Detector
The EUR/USD did not go anywhere fast on slow-motion trading on the US Labor Day. After hugging the 1.1600 level, what's next?
The Technical Confluences Indicator shows that the pair faces immediate resistance at 1.1620 which is the meeting point of the Fibonacci 23.6% one-day, the Fibonacci 23.6% one-week, the Simple Moving Average 50-one-day, the SMA 50-15m, the SMA 100-15m, the Bolinger Band 1h-Middle, and the Fibonacci 38.2% one-day.
Further up, the next cap for the EUR/USD is at 1.1643 where we see the convergence of the SMA 50-4h, the Fibonacci 38.2% one-week, and the BB 4h-Middle.
On the downside, we see a cushion around 1.1570 which includes the BB 4h-Lower, the Fibonacci 161.8% one-day, the Fibonacci 61.8% one-month, and the Pivot Point one-day Support 2.
However, the most significant support level is only at 1.1545 which is the confluence of the PP one-week Support 1, the BB one-day Middle, and the SMA 100-4h.
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.
