EUR/USD may recover to 1.1650 or continue crashing all the way to 1.1440 – Confluence Detector
After the EUR/USD suffered the biggest fall since Donald Trump was elected President, it is looking for the next move: a recovery or further falls? The targets look clear.
The Technical Confluences Indicator shows that a recovery will face a dense cluster of resistance at 1.1650 which is the convergence of the Fibonacci 23.6% one-month, the one-week low, and the Simple Moving Average 100-15m.
Should it overcome this barrier, the next big target is 1.1714 which is the confluence of the Simple Moving Average 10-4h, the SMA 100-4h, and the Bolinger Band one-day Middle Stdv. 2.2.
Lokking down, the 1.1510 level is notable as it is the 2018 low and the lowest since July 2017. Just under 1.1500, the pair may scattered levels of support. Yet the most important line to watch is 1.1440 which is the potent Pivot Point one-month Support 1.
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.
