EUR/USD may extend falls as it has no significant support – Confluence Detector
The EUR/USD suffered the eventual USD strength that followed the Fed decision and the saga over the Italian budget. After dropping to around 1.1700, it does not have support and may continue falling.
The Technical Confluences Indicator shows that the pair is capped by 1.1715 which is the convergence of the Pivot Point one-day Support 1, the Simple Moving Average 10-one-day, and the Bolinger Band one-hour Lower.
Very strong resistance awaits at 1.1760 where we see the Fibonacci 38.2% one-day, the Bolinger Band 4h-Middle, the SMA 200-15m, the SMA 50-1h, the SMA 100-1h, the SMA 10-4h, the SMA 5-one-day, and the Fibonacci 23.6% one-week.
Looking down, we see only very weak confluences of support. 1.1690 is the Fibonacci 61.8% one-week and the BB 15-Lower. 1.1647 is the meeting point of the PP one-week S1 and the PP one-day S3. 1.1615 is where we see last week's low and the SMA 50-one-day.
All in all, the path of least resistance is down.
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.
