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:

EUR USD technical confluence January 8

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.


GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.


Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY rises further above 109.10 as Wall Street recovers

The USD/JPY pair rose further during the American session amid an improvement in market sentiment. It printed a fresh daily high at 109.19.