EUR/USD has more room to the downside than to the upside ahead of US GDP – Confluence Detector
EUR/USD has hit a new 2019 low after the European Central Bank's decision but bounced back. The world's most popular currency pair now faces the US GDP release. How is it positioned?
The Technical Confluences Indicator shows that EUR/USD is currently struggling around 1.1162 where we see the convergence of the previous monthly low, the Bollinger Band 15min-Upper, the BB 4h-Middle, and the Fibonacci 38.2% one-day.
Fierce resistance awaits at 1.1192 which is the confluence of the Pivot Point one-week Support 1, the previous daily high, and the PP 1d-Resistance 1.
Another considerable cap awaits at 1.1220 where the PP one-month S1 and the Fibonacci 23.6% one-week converge.
Support awaits at 1.1105 which is a dense cluster including the PP 1w-S3, the previous daily low, the PP 1d-S1, and the BB 4h-Lower.
The next cushion is at 1.1064 where the PP 1d-S2 and the PP 1m-S2 meet up.
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.
