EUR/USD targets 1.1870 after the big breakout — Confluence Detector
The EUR/USD is extending its recovery as the market mood improves. Where next?
The Technical Confluences Indicator shows that the pair faces immediate resistance around 1.1765 which is the convergence of the Bolinger Band one-day-Middle, the Pivot Point one-week Resistance 1, the Pivot Point one-day Resistance 1, and the Bolinger Band one-hour Upper Stdv. 2.2.
However, strong resistance is only at the 1.1870 level which is the confluence of the Fibonacci 61.8% one-month, the Fibonacci 161.8% one week, and the Simple Moving Average 200-4h.
On the downside, the pair faces some support at 1.1735 which is the congestion of the Fibonacci 38.2% one-month, the one-day High, the Bolinger Band 1h-Upper, the SMA 10-15m, the SMA 5-1h, the BB 15m-Middle, and the SMA 5-15m.
Furter support is at 1.1702 which is the congestion of the SMA 10-4h, the Fibonacci 38.2% one-day, the SMA 200-15m, the SMA 50-1h, and the SMA 5-4h.
The strongest line of support is at 1.1649 which is the meeting point of the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-week, and the Bolinger Band 1h-Lower.
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.
