EUR/USD enjoys solid support and may extend its gains – Confluence Detector

Yohay Elam FXStreet

EUR/USD has advanced amid USD weakness and has settled closer to 1.11. Where next for the world's most popular currency pair? The technical lines are pointing to the upside.

The Technical Confluences Indicator is showing that euro/dollar has robust support at 1.1061, which is the convergence of the Fibonacci 38.2% one-month, the Fibonacci 38.2% one-day, and the Simple Moving Average 100-15 minutes.

Looking up, the first hurdle is 1.1096, which is the confluence of the previous daily high, the Pivot Point one-week Resistance 3, and the Bollinger Band one-day Upper.

Higher above, the next target is 1.1130, where we see the PP one-month R1 and the PP one-day R2.

Below 1.1061, the next substantial support line awaits at 1.0987, which is the meeting point of the previous monthly low, the previous weekly low, and the BB one-day Lower.

Here is how it looks on the tool:

EUR USD confluence analysis December 3 2019

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

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.

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