EUR/USD spooked by critical support, break or bounce? – Confluence Detector
The EUR/USD has been under pressure by news from Italy and Germany in recent days but bounced back after every drop. The pair is now at the edge of a critical support line on Halloween. Will it hold on this time?
The Technical Confluences Indicator shows that a dense cluster of support lines is aligned around 1.1335. This consists of last week's low, the daily low, the Bollinger Band 15-min Lower, the BB one-day Lower, and the Pivot Point one-day Support 1 among others.
A break below 1.1335 opens the door to 1.3312 where we see the convergence of the Pivot Points one-day Support 2, and one-month Support 1. The next level below is 1.1218 where the Pivot Point one-week Support 2 is seen.
Looking up, 1.1352 serves as resistance and is the confluence of the Bollinger Band 15-min Upper, the SMA 5-4h, the Fibonacci 23.6% one-day and the previous 4h-high.
At 1.1388 we see the meeting point of the Fibonacci 23.6% one-week and yesterday's high point.
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.
