USD/CAD to 1.30? Not so fast — Confluence Detector
The USD/CAD made a big breakout as the US prepares to exit the Iran deal and the pair is trading at the highest in six weeks, approaching 1.30. Will it make the break? Technical Confluences Indicator shows that fierce resistance awaits at C$1.2980. This is the convergence line of the Pivot Point one-week R2, the Bolinger Band one-day Upper, and the Fibonacci 161.8% one-day.
If the pair does make the break 1.3020 provides another cap. It is the confluence of the Pivot Point one-month R1 and the Pivot Point one-week R3.
Support is found at around 1.2890. This is where the Fibonacci 61.8% one-day, the 4h-High, the Fibonacci 23.6% one-week, the Simple Moving Average 100-15m, the Bolinger Band 15m-Lower, and the Bolinger Band 1h-Middle.
Further below, 1.2860 is another line of support with the SMA5-one day, the Fibonacci 23.6% one-day, the SMA200-1h, and the SMA50-1h awaits.
Tha battle lines are well drawn for the next fight.
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. This means 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.
