EUR/USD path of least resistance is down on Non-Farm Payrolls day — Confluence Detector
The EUR/USD is trading in a tense range as a turbulent week draws to a close and the US Non-Farm Payrolls report is eyed. The pair might find it easier to fall.
The Technical Confluences Indicator shows that the pair faces an immediate dense cluster of resistance at 1.1695. The long list of technical lines includes the Simple Moving Average 5-15m, the SMA 100-15m, the SMA 50-15m, the SMA 10-1h, the SMA 5-4h, the Fibonacci 23.6% one-week and the Fibonacci 38.2% one-day.
Should the pair move higher, the next convergence of resistance lines is close. The 1.1736 is the confluence of the Fibonacci 38.2% one-month, the Pivot Point one-day Resistance 1, and the one-day high. An even stronger line awaits at 1.1772 which is the congestion of the Simple Moving Average 100-4h, the Pivot Point one-day Resistance 2, the Pivot Point one-way Resistance 1, and the Fibonacci 61.8% one-week.
On the downside, the pair may find support at 1.1650 which is the confluence of the Fibonacci 23.6% one-month, the Pivot Point one-day Support 1, the Simple Moving Average 100-1h, the SMA 5-1d. A weaker cluster of support awaits at 1.1590 which is the Pivot Point one-week Support 1 and the Fibonacci 161.8% one-day.
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.
