EUR/USD well-supported for a change, but can it rise? — Confluence Detector
The EUR/USD begins a new week after closing the previous one on higher ground, not a very common scene. Can it continue its recovery? The 1.1649 level is key.
The Technical Confluences Indicator shows that the EUR/USD enjoys a dense cluster of support around 1.1680. This is the convergence of the Bolinger Band 1h-Middle, the Simple Moving Average 50-15m, the SMA 10-1h, the SMA 10-4h, and the Fibonacci 61.8% one-day.
Stronger support awaits at 1.1649. This is the meeting points of the Bolinger Band 1h-Lower, the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-week, the SMA 100-1h, and the Fibonacci 23.6% one-day.
If this strong line falls, the next support level is only at 1.1564 which is the confluence of the Fibonacci 23.6% one-week and the Pivot Point one-day Support 2.
Looking up, some resistance awaits at around 1.1735 which is the Fibonacci 38.2% one-month and stronger resistance at around 1.1771 which is the Pivot Point one-day Resistance 2, the Bolinger Band one-day Middle, and the Pivot Point one-week Resistance 1.
All in all, there is more support than resistance, pointing to further upside.
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.
