EUR/USD path of least resistance is down after the recent downfall – Confluence Detector
EUR/USD has been losing ground after US retail sales came out above expectations on Friday and expectations for the Fed decision have moderated. The world's most-currency pair is currently trading marginally off the lows but has not gone too far.
The Technical Confluences Indicator shows that EUR/USD faces strong resistance at 1.1258 which is the convergence of the Pivot Point one-month Resistance 1, the Fibonacci 61.8% one-day, and the Fibonacci 38.2% one-week.
If is backed up by another cap – at 1.1240 where we see the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the Simple Moving Average 100-15m meet up.
Support awaits at 1.1205 which is the confluence of the previous daily low and the Fibonacci 61.8% one-month.
Further down, somewhat weaker support awaits at 1.1176 which is where the Bollinger Band 1h-Lower and the Pivot Point one-day Support 1 converge.
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.
