EUR/USD under growing pressure, 3 levels to watch below 1.1300 – Confluence Detector

Yohay Elam FXStreet

The EUR/USD extended its falls and hit new 10-week lows at 1.1311. It still holds on above 1.1300, the 2018 low and also a round number. But for how long? It is time to look below the figure.

The Technical Confluences Indicator shows that the world's most popular currency pair still has some support just above the round number. The Pivot Point one-month Support 1, the Bollinger Band 15m-Lower, and the PP one-day S2 all converge around 1.1310.

If the pair breaks down, some support awaits at 1.1279 which is the Pivot Point one-week. This is only a weak support line.

The next cushion is much lower. At 1.1215 we see the Pivot Point one-week and also served as resistance in 2017.

The third and last line to watch is 1.1197 is the Pivot Point one-month Support 3 and also worked as support last year.

And what a recovery? The EUR/USD faces fierce resistance at around 1.1338 where we see the confluence of the Simple Moving Average 5-4h, the Fibonacci 161.8% one-month, and the SMA 100-15m, among others.

Here is how it looks on the tool:

EUR USD technical confluence October 31 2018

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.

Learn more about Technical Confluence

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.

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