EUR/USD marches forward and eyes 1.1860 – Confluence Detector

The EUR/USD continues advancing in a gradual manner, reaching the highest levels in over three weeks. What's next? 

The Technical Confluences Indicator shows that the pair is currently battling a tough level of resistance line at 1.1770 which is the congestion of the Simple Moving Average 10-15m, the 4h-high, the one-day high, the Boligner Band 1h-Upper, the SMA 5-15m, and the BB 15m-Middle. 

Upon topping this level, the door is open to much higher ground. 1.1860 is the convergence of the all-important one-month high, the Pivot Point one-month Resistance 1, and the Pivot Point one-day Resistance 3. 

Looking dowm, some support awaits at 1.1748 which is the confluence of the SMA 5-4h, the SMA 50-one-day, the Bolinger Band one-hour Middle. Much stronger support awaits at 1.1723 which is the meeting point of the SMA 50-1h, the Fibonacci 61.8% one-month, and the SMA 10-4h, among others.

The broader picture shows that the pair has quite a few robust levels of support on the downside whle resistance levels are far and few apart. 

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.

Learn more about Technical Confluence