EUR/USD enjoys solid support and may target 1.1178 – Confluence Detector
EUR/USD has seen a whipsaw, falling sharply and then rebounding as markets were trying to understand the European Central Bank's decision. Investors now face US retail sales and additional events before the week draws to a close. How is the currency pair positioned?
The Technical Confluences Indicator is showing that EUR/USD enjoys solid support at 1.1052, which is the convergence of the Simple Moving Average 5-4h, the SMA 100-4h, the Fibonacci 23.6% one-week, the Bollinger Band 1h-Middle, and the Fibonacci 23.6% one-day.
Further down, the currency pair has stronger support at 1.1029, which is where the SMA 50-4h, the Fibonacci 38.2% one-week, and the Fibonacci 38.2% one-day meet.
Looking up, significant resistance awaits at 1.1144, where we note a confluence of lines including the Fibonacci 61.8% one-month, the BB 1d-Upper, and the SMA 50-1d.
Higher, the next target is 1.1178, which is where the PP 1w-R2 and the PP 1m-R1 converge.
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.
