EUR/USD tumbled down to the lowest levels in 22 months on Thursday, hitting 1.1112 as the greenback gained ground across the board. It then managed to recover awaiting the US GDP report. What's next?
The Technical Confluences Indicator shows that EUR/USD enjoys substantial support at around 1.1116 which is the convergence of the Pivot Point one-day Support 1, the PP 1m-S1, the previous daily low, and the Bollinger Band 1h-Lower.
If it loses this line, the next cushion is only at 1.1012 which is the Pivot Point one-month Support 2.
Looking up, some resistance awaits at 1.1210 where we see the PP one-day R3, the PP 1w-S1, the Simple Moving Average 100-1h, and the SMA 5-1d,
The next cap is at 1.1245 which is a dense cluster of lines including the BB 1d-Middle, the Fibonacci 23.6% one-month, the SMA 10-1d, and the Fibonacci 23.6% one-week.
All in all, a lot depends on 1.1116.
Here is how it looks on the tool:
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.