EUR/USD has room to run all the way to 1.1370 after breaking higher – Confluence Detector
EUR/USD has emerged from the lows as the greenback fell in response to falling US treasuries. Will the Federal Reserve cut interest rates? In the meantime, the charts show it has more room to run.
The Technical Confluences Indicator shows that clusters of support are more significant than resistance ones. Looking up, the first resistance area is at 1.1271 where we see the previous monthly high and the Pivot Point one-week Resistance 2 converge.
Further up, the next cap is at 1.1323 where the Pivot Point one-day Resistance 2 meets the PP 1w-R3.
Next up, the last noteworthy cap is at 1.1370 where the all-important Fibonacci 161.8% one-month awaits.
Looking down, considerable support awaits at 1.1224 where a confluence of strong lines awaits the pair: this includes the previous weekly high, the PP 1w-R1, the Bollinger Band 1h-Middle, the Simple Moving Average 100-15m, and the previous yearly low.
Further down, the currency pair enjoys several cushions on the way down with the most significant one waiting at 1.1171 where the Fibonacci 38.2% one-month and the Bollinger Band 4h-Middle converge.
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.
