EUR/USD eyes 1.0890 as the next downside target – Confluence Detector
EUR/USD has been on the back foot as the US dollar stormed the board. As it nears the 2019 low of 1.0926, it is time to look at the next downside targets.
The Technical Confluences Indicator is showing that EUR/USD has some support at 1.0941, which is the meeting point of the Pivot Point one-week Support 2 and the previous daily low.
If the world's most popular currency pair slips to lower ground, the next support line is 1.0890, which is the convergence of the PP 1m-S1, the PP 1d-S2, and the PP 1w-S3.
Noteworthy resistance awaits at 1.0992, which is the confluence of the Fibonacci 61.8% one-day, the Bollinger Band 1h-Upper, the BB 4h-Middle, and the previous weekly low.
A considerable cap awaits at 1.1032, where we see several substantial liens converge – the Fibonacci 38.2% one-week, the Simple Moving Average 100-4h, and the Fibonacci 23.6% one-month.
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.
