EUR/USD path of least resistance remains up as it looks for a new direction – Confluence Detector
The EUR/USD has erased its recovery and settled at the somewhat lower ground amid growing trade tensions. Where is it heading next?
The Technical Confluences Indicator shows that the pair is battling the 1.1722 - 1.1734 area where it is hugged by a congestion of many levels. These include the Simple Moving Average 5-one-day, the Fibonacci 38.2% one-day, the Fibonacci 61.8%, the Bolinger Band 15m-Lower, the Fibonacci 23.6% one-week, the SMA 515m, and the SMA 5-4h.
Should the pair give in to pressure and fall, the next substantial confluence of support is at 1.1704 which is the confluence of the Fibonacci 38.2% one-week, the Pivot Point one-day Support 1, and the Bolinger Band 1h-Lower.
Below, 1.1661 may provide support as it is the meeting point of the Fibonacci 61.8% one-week and the Pivot Point one-day Support 2. Yet a firm cushion is only at 1.1594 which is where the Fibonacci 23.6% one-month and the one-week low converge.
On the topside, 1.1807 is the first target with the convergence of the Fibonacci 161.8% one-day, the Pivot Point one-week Resistance 1 and the Pivot Point one-day Resistance 2.
Even higher, 1.1860 remains a target as the meeting point between the Pivot Point one-month Resistance 1 and the one-month high.
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.
