EUR/USD capped by two resistance clusters and may struggle to recover – Confluence Detector
EUR/USD is trading in the mid 1.11s, off the highs. Where next for the world´s most popular currency pair_
The Technical Confluences Indicator is showing that euro/dollar is capped at 1.1155, which is a dense cluster of lines including the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-month, the SMA 50-15m, the previous 4h-low, the Bollinger Band 15min-Middle, and the BB 1h-Middle.
Further above, a stronger resistance line awaits at the pair. The 1.1190 level is the convergence of the Fibonacci 23.6% one-month, the Pivot Point one-day Resistance 1, and the SMA 50-4h.
Looking down, support awaits at 1.1097, which is the confluence of the PP 1d-S2, the Fibonacci 61.8% one-month, and the SMA 50-1d.
Lower, 1.1068 is another cushion. It is the meeting point of the SMA 100-1d and the PP 1m-S1.
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.
