EUR/USD has substantial support and may rise, targeting 1.1311 – Confluence Detector
EUR/USD extended its gradual recovery on a better market mood around Brexit, trade, and other topics. Can it extend its gains? The charts are optimistic as well.
The Technical Confluences Indicator shows that euro/dollar enjoys significant support at 1.1245 where we see a dense cluster including the Simple Moving Average 100-15m, the Pivot Point one-month Support 1, the Bollinger Band 1h-Middle, the BB 4h-Middle, the Fibonacci 38.2% one-day, the SMA 5-4h, the Fibonacci 23.6% one-day, ant eh BB 15min-Middle.
The initial upside target is 1.1311 where we see the convergence of the SMA 50-4h, the Fibonacci 61.8% one-week, and the SMA 200-1h.
Further up, 1.1392 is a high target. It is the confluence of the previous week's high and the Fibonacci 61.8%.
Support is quite robust immediately below 1.1245 with another substantial cluster awaiting at 1.1217 which is the meeting point of the BB 1d-Lower, last year's low, and the PP one-day Support 2.
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.
