EUR/USD path of least resistance remains to the upside – Confluence Detector

EUR/USD kicks off the new week with a positive note, gradually moving to the upside. Can it continue higher? The downside is well-defended.

The Technical Confluences Indicator shows that the world's most popular currency pair is battling 1.1438 which is the convergence of the Fibonacci 23.6% one-month, the Simple Moving Average 50-15m, and the Pivot Point one-day Resistance 1. 

Some weaker resistance awaits at 1.1456 where we see the meeting point of the Bollinger Band one-day Upper and the Pivot Point one-week Resistance 1.  Another cap is at 1.1480 with the Pivot Point one month Resistance 1.

Looking down, euro/dollar has massive support at around 1.1400. The dense cluster includes the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, the SMA 10-4h, the SMA 100-15m, and the BB one-hour Middle.

Another considerable support area awaits at 1.1384 which is where the SMA 200-15m, the Fibonacci 38.2% one-week, and the Pivot Point one-day Support 1.

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