EUR/USD path of least resistance is down, 1.1480 eyed – Confluence Detector
The EUR/USD is on the back foot once again, below 1.1600. Where next? The currency pair may find it hard to recover and further downside falls may be the way to go.
The Technical Confluences Indicator shows that the EUR/USD has weak support at 1.1565 where we see the Pivot Point one-day Support 1 and the one-day low.
More significant support awaits only at 1.1480 where we see the convergence of the Pivot Point one-month Support 3 and the Pivot Point one-day Support 3. This is the downside target for the world's most popular currency pair.
Looking up, 1.1613 is the confluence of the 4h-high and the Simple Moving Average 50-one-day.
Robust resistance is at 1.1650 which is the congestion of the one-day high, the Simple Moving Average 100 one-day, the Pivot Point one-day Resistance 1, the Fibonacci 38.2% one-week.
All in all, the path of least resistance remains to the downside.
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.
