EUR/USD rests on strong support ahead of the ECB – Confluence Detector
The EUR/USD settled on higher ground after the US Dollar lost some ground. As the focus turns to the meeting of the European Central Bank, the pair's position looks technically favorable.
The Technical Confluences Indicator shows that the EUR/USD has strong support at 1.1616 which is the dense cluster of the Fibonacci 61.8% one-week, the Simple Moving Average 10-one-day, the SMA 50-one-day, the SMA 100-15m, the SMA 100-4h, the Fibonacci 38.2% one-day, and the Bolinger Band one-hour Middle.
1.1664 is an initial upside target. We see the confluence of last week's high and the Pivot Point one-day Resistance 1.
The high target is 1.1742 where we see the convergence of the Fibonacci 161.8% one-week, the Pivot Point one-day Resistance 3, and last month's high.
Looking down, support awaits at 1.1574, where we see the meeting point of the Fibonacci 61.8% one-month and the one-day low.
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.
