EUR/USD path of least resistance is down ahead of German CPI, US GDP – Confluence Detector

Yohay Elam FXStreet

EUR/USD has been consolidating its losses in the mid-1.1300s and is looking for a new direction. It now awaits critical inflation data from Germany and the final first-quarter GDP from the US. What's next?

The Technical Confluences Indicator shows EUR/USD faces robust resistance at around 1.1365 which is a dense cluster of technical lines including the Simple Moving Average 5-one-day, the SMA 5-15m, the Fibonacci 61.8% one-day, the Fibonacci 161.8% one-month, and more.

Further up, the world's most popular currency pair may stall at 1.1416 which is the convergence of the Pivot Point one-day Resistance 2, the PP 1m-R3, the BB one-day-Upper, and the BB 4h-Upper.

Looking down, somewhat weaker support awaits at 1.1349 which is the confluence of the previous daily low, the SMA 200-1d, the BB 1h-lower, and the BB 4h-lower.

Further down, the next cushion awaits at 1.1305 where the Fibonacci 38.2% one-week converges with the SMA 50-4h.

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.

Learn more about Technical Confluence

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.

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