EUR/USD has an open door to $1.2400, but that is a tough nut to crack — Confluence Detector
The Technical Confluences Indicator shows that the EUR/USD made its way through the woods of resistance lines and has now reached an opening in the forest. From here, there are no new dense areas of confluence until $1.2400. But that $1.2400 level is quite thick. It is the convergence point of the Fibonacci 23.6% point on the weekly chart, the one-week high, the Pivot Point one-week Resistance 1, the PP one-day R3, and the Bolinger Band one-hour Upper (Stdv. 2.2).
If the pair does manage to break higher, the next level of resistance is the area around $1.2480. This is the confluence of the one-month high, the PP one-month R1, and the PP one-week R2.
A failure to move higher opens the door to the downside, but a dense area of support may limit the falls. The most critical line of support is at $1.2320. This is a congestion on several levels: the SMA10 one-day, the Pivot Point one-day S1, the Fibo 61.8% one-week, the BB one-hour-Lower, and more.
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.
