EUR/USD is reaching critical support at 1.1240, break or bounce? – Confluence Detector
EUR/USD continues drifting lower, erasing its recovery and trading at the lowest levels in two weeks. What's next? It is now close to critical support.
The Technical Confluences Indicator shows that the euro/dollar has a lot of support at 1.1240 which is a dense cluster including the Bollinger Band 1h-Lower, the Pivot Point one-month Support 1, the PP one-day S1, the BB 4h-Lower, the previous monthly low, and the PP one-week Low.
Further down, the pair only has weak support. 1.1217 is where the 2018 trough meets the PP one-day S2, and the BB one-day Lower.
Looking up, there are lots of resistance lines on the way up, with a substantial one at 1.1282 where we see the convergence of the previous 4h-high, the Simple Moving Average 5-4h, the Fibonacci 23.6% one-day, the BB 1h-Middle, and the previous weekly low.
The most significant cap is at 1.1340 where we see the confluence of the SMA 200-1h, the SMA 5-1d, the SMA 50-4h, the Fibonacci 38.2% one-month, the SMA 10-1d, the Fibonacci 38.2% one-week. and the SMA 50-one-day.
It is closely followed by 1.1369 where we see the SMA 100-one-day and the Fibonacci 161.8% one-day 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.
