EUR/USD has room to push higher if it moves above this resistance line – Confluence Detector
EUR/USD is moving up on the extension in trade talks between the US and China. How far can it go? It enjoys significant support but faces some resistance on the way up.
The Technical Confluences Indicator shows that the pair is capped at 1.1366 which is the convergence of the Pivot Point one-day Resistance 1, the previous day's high, and the Fibonacci 23.6% one-month.
Further up, resistance lines are thinner. and a worthy upside target is only at 1.1472 where we see the Fibonacci 61.8% one-month and the PP 1w-R3 meet.
Significant support awaits on the downside. At 1.1330 we see the confluence of the Fibonacci 38.2% one-day, the Simple Moving Average 5-1d and the Fibonacci 38.2% one-week.
Further support is at 1.1295 where we see the previous month's low, the PP 1d-S2, and the PP 1m-S1.
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.
