EUR/USD has a clear upside target at 1.1666 – Confluence Detector
The EUR/USD made a sharp turnaround and trades at higher ground. What are the next levels to watch?.
The Technical Confluences Indicator shows that the pair faces a clear congestion of resistance levels at 1.1666. This is the convergence of the Simple Moving Average 50-4h, the SMA 200-1h, the Fibonacci 38.2% one-week, the Pivot Point one-day Resistance 3, and the Bolinger Band one-day Middle.
Further above, a confluence of potent caps awaits at 1.1738 where the Fibonacci 61.8% one-week, the Fibonacci 38.2% one-month, and the Simple Moving Average 200-4h await.
On the downside, 1.1575 is the congestion of the Simple Moving Average 100-15m, the SMA 50-1h, the SMA 200-15m, the SMA 5-1h, the SMA 10-4h and more.
Even lower, the 1.1539 level is another support line featuring the Bolinger Band one-hour Lower, the one-day High, and the Pivot Point one-day Support 1.
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.
