EUR/USD recovery to 1.1380 or new yearly lows at 1.1205? – Confluence Detector
EUR/USD kicks off Wednesday by licking its wounds from Tuesday's downfall which sent it below 1.1300. What's next?
The Technical Confluences Indicator shows that the world's No.1 currency pair is trading within a narrow range. On the upside, we see 1.1304 as the convergence of the Simple Moving Average 5-15m, the SMA 5-4h, the Bollinger Band 15-min Upper, and the Fibonacci 38.2% one-day.
On the other side, support awaits at 1.1275 and this includes yesterday's low, the Pivot Point one-month Support 1, the BB 4h-Lower, and the BB 1h-Lower.
Looking up, there are quite a few resistance lines but the most substantial one is at 1.1380 where we see the confluence of the SMA 200-1h, the Fibonacci 23.6% one-month, the SMA 100-4h, the SMA 10 one-day, and the Fibonacci 38.1% one-week.
On the downside, the most noteworthy support line is around 1.1205 where we see the Pivot Point one-week Support 3 and the Pivot Point one-month Support 1 meet.
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.
