EUR/USD has been enjoying US dollar weakness related to the trade war with China to reach 1.1200. Can it extend its gains? The world's most popular currency pair enjoys solid support.
The Technical Confluences Indicator is showing that EUR/USD is underpinned by solid support at around 1.1176 which is a dense cluster of lines including the Simple Moving Average 100-4h, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, and the Bollinger Band one-day Middle.
Looking up, noteworthy resistance awaits at 1.1252 which is the convergence of the Fibonacci 161.8% one-week, the previous 4h high, and the Fibonacci 61.8% one-month.
Even high, the next target is 1.1310 where we see the confluence of the BB 1d-Upper, the PP 1w-R3, and the SMA 200-1d.
Below 1.1176, EUR/USD may find support at 1.1129 where three SMAs meet: the 5-1d, the SMA 50-4h, and the SMA 200-1h.
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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to small gains above 1.0700 ahead of data
EUR/USD trades marginally higher on the day above 1.0700 on Tuesday after EU inflation data for April came in slightly stronger than expected. Market focus shifts to mid-tier US data ahead of the Fed's policy announcements on Wednesday.
GBP/USD recovers to 1.2550 despite US Dollar strength
GBP/USD is recovering losses to trade near 1.2550 in the European session on Tuesday. The pair rebounds despite a cautious risk tone and broad US Dollar strength. Investors await macroeconomic data releases from the US.
Gold extends daily slide toward $2,310 ahead of US data
Gold stays under bearish pressure and declines toward $2,310 on Tuesday. The benchmark 10-year US Treasury bond yield holds steady at around 4.6% ahead of US data, making it difficult for XAU/USD to stage a rebound.
XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.
Mixed earnings for Europe as battle against inflation in UK takes step forward
Corporate updates are dominating this morning after HSBC’s earnings report contained the surprise news that its CEO is stepping down after 5 years in the job. However, HSBC’s share price is rising this morning and is higher by nearly 2%.