EUR/USD recovery? Not so fast – Confluence Detector
EUR/USD kicked off the week with a drop below 1.1300, eventually hitting the lowest levels in two months. Can it recover from here or is the triple bottom in danger? The downside looks more appealing.
The Technical Confluences Indicator shows that euro/dollar faces a significant cap around 1.1292 where we see a dense cluster including the Bollinger Band one-day Lower, last month's low, the Simple Moving Average 100-15m, the Fibonacci 38.2% one-day, and the Pivot Point on one-month Support 1.
Significant support awaits only at around 1.1215 which was the 2018 low and also converges with the Pivot Point one-week Support 2 and the PP one-day S2.
If EUR/USD extends its fall, the low target is 1.1152 where we see the meeting point of the PP one-month S3 and the PP one-month S2.
On the topside, immediate resistance is at 1.1321 which is the confluence of the PP one-day R1, last week's low, and the BB 4h-Middle.
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.
