EUR/USD path of least resistance is up as Americans go to the polls – Confluence Detector

The EUR/USD is trading above 1.1400 ahead of the US Mid-Term Elections, Can the pair go even higher? 

The Technical Confluences Indicator shows that the pair has a dense cluster of support lines at 1.1401. This includes the Bollinger Band 4h-Middle, the Fibonacci 38.2% one-day, the Fibonacci 61.8%, the SMA 100-15m, the BB 15m-Lower, the BB 1h-Middle, the Simple Moving average 1h-, and the SMA 5-4h.

Below we note another substantial cushion at 1.1383 which is the convergence of the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-day, and the SMA 50-4h. 

So, if the EUR/USD has a lot of support. what is going on on the upside? There are a few resistance lines spread out between 1.1401 and 1.1431 which is the meeting point of the Fibonacci 38.2% one-month and the Bollinger Band 1h-Upper. However, these lines are not potent.

Further above, 1.1466 is the confluence of the Pivot Points one-week Resistance 1, and the one-day R2. 

Looking even higher, 1.1508 is where the Fibonacci 61.8% one-month and the Pivot Point one-day Resistance 3 converge. It is followed closely by 1.1519 where we see the SMA 200-4h and the Pivot Point one-month R2.

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