EUR/USD on the edge of a cliff and losing it open the door to a free-fall – Confluence Detector
The EUR/USD is trading around the lows, well below 1.1400, consolidating its losses. What's next? Will the US GDP push it over the cliff's edge?
The Technical Confluences Indicator shows that the pair is struggling and currently stuck in a dense cluster around 1.1360-1.1370. The edge of the cliff is around 1.1346 where we see the convergence of the Bollinger Band one-hour Lower, the BB 4h-Lower, the Fibonacci 161.8% one-month, and the Pivot Point one-week Support 3.
A loss of this line shows that the EUR/USD could free-fall all the way to 1.1240 where we see the Pivot Point one-month Support 3, a medium-level size of support.
Significant resistance awaits at 1.1394 which is the confluence of the Simple Moving Average 10-4h, the PP one-day S2, and the BB one-day Lower.
1.1430 is the next line to watch on the upside. It is the meeting point of last week's low, the SMA 100-1h, and the BB 4h-Middle.
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.
