EUR/USD ready to rally on Fed Day – Confluence Detector
EUR/USD is stable ahead of the all-important decision by the Federal Reserve. Will Chair Jerome Powell be hawkish or dovish? The world's most popular currency pair is well=positioned to rise, as support is more significant than resistance.
The Technical Confluences Indicator shows that the pair is battling the 1.1451 area which is the convergence of the Bollinger Band 15min-Upper, the previous 4h-high, the BB 1h-Upper, and the Simple Moving Average 100-one-day.
Looking up, there is only some weak resistance at 1.1487 which is last month's high and the Pivot Point one-day Resistance 3.
The next cap is only at 1.1540 which is the meeting point of the PP one-month R1 and the BB one-day Upper, also in the vicinity.
Looking down, substantial support is at 1.1439 which is a dense cluster including the BB 15min-Lower, the Fibonacci 23.6% one-month, the Fibonacci 38.2% one-day, the SMA 10-1h, the SMA 200-15m, the SMA 50-1h, the SMA 10-4h, and the BB 1h-Middle.
Close by, another considerable cushion awaits at 1.1415 where we see yesterday's low, the PP one-day S1, the SMA 200-4h, and the BB one-day Middle.
The most significant support line is at 1.1391 which is a minefield of technical lines including the Fibonacci 161.8% one-day, the Fibonacci 23.6% one-week, and the SMA 50-one-day.
All in all, the path of least resistance is clearly to the upside.
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.
