EUR/USD recovery looks limited ahead of the ECB – Confluence Detector
The EUR/USD managed to claw its way back up above 1.1400 but still hesitates ahead of the all-important ECB decision.
The Technical Confluences Indicator shows that the world's most popular currency pair faces resistance around 1.1433 where we see the convergence of the Simple Moving Average 10-4h, last week's low, the SMA 200-15m, and the SMA 50-1h.
Stronger resistance awaits at 1.1482 which is the confluence of the Pivot Point one-month Support 1, and the Fibonacci 23.6% one-week, both significant lines of resistance.
Looking down, a cluster of support is seen around 1.1396 which is the meeting point of the Bollinger Band one-day Lower, the Pivot Point one-day Support 2, and the SMA 5-4h.
Should the pair tumble down, the area around 1.1350 could halt the fall. The cluster consists of the Fibonacci 161.8% one-month, the Pivot Point one-day Support 3, and the Pivot Point one-month Support 2.
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.
