EUR/USD will find it easier to fall than rise ahead of PMIs, ECB minutes – Confluence Detector
EUR/USD has been trading in a very limited range in recent days, clinging to 1.1150. When the currency pair finally begins moving more significantly, it faces tough resistance while support is weaker. The euro faces two tests today: the preliminary purchasing managers' indices for May and the meeting minutes from the latest meeting of the European Central Bank.
The Technical Confluences Indicator shows that EUR/USD faces resistance at 1.1165 which is the convergence of the Bollinger Band 4h-Middle, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-month, and the Simple Moving Average 5-one-day.
If euro/dollar manages to break higher, it faces an even more considerable cap at 1.1195 where we see a dense cluster including the SMA 10-1d, the Fibonacci 38.2% one-month, the SMA 100-4h, the Pivot Point one-day R2, the Fibonacci 38.2% one-week, and more.
Looking down, significant support is only at 1.1113 where we see the PP one-month S1, last month's low, and the PP 1d-S3 all converge.
Below this level, the currency pair may target 1.1015 which is where the Pivot Point one-week S3 awaits.
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.
