EUR/USD has its battle lines set ahead of the ECB – Confluence Detector

Yohay Elam FXStreet

EUR/USD has returned to the low 1.1200s after a round-trip to the upside that was triggered by mixed US data. The focus now shifts to Europe with the ECB set to respond to the latest developments. The world's most-popular currency pair has its technical battle lines set.

The Technical Confluences Indicator shows that EUR/USD faces resistance at 1.1254 where it faces the confluence of the Fibonacci 38.2% one-day, the Pivot Point one-month Resistance 1, the Simple Moving Average 200-15m, and the SMA 50-1h.

Further above, the pair faces another cap at 1.1279 where the SMA 100-1d, the PP 1d-R1, and the Fibonacci 61.8% one-day meet.

Looking down, weak support awaits at 1.1220 where the PP 1w-R1 and the previous weekly high converge.

Strong support awaits at the 1.1170-1.1.1181 range where a dense cluster of lines awaits the pair and includes the SMA 100-4h, the Fibonacci 61.8% one-week, the BB 4h-Lower, and the Fibonacci 38.2% one-month.

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.

Learn more about Technical Confluence

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.

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