EUR/USD faces fierce resistance and has room to fall ahead of the ECB – Confluence Detector

Yohay Elam FXStreet

EUR/USD is trading around 1.10 as tension mounts ahead of the all-important decision of the European Central Bank. Will Draghi drag the euro down or disappoint high expectations and send it higher? The world's most popular currency pair is poorly-positioned ahead of the event.

The Technical Confluences Indicator is showing that EUR/USD is trading below a dense cluster of technical levels between 1.1019 to 1.1030. The area includes the Simple Moving Average 10-4h, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-month, the Bollinger Band 1h-Upper, Fibonacci 38.2% one-week, the BB 15min-Upper, and the SMA 100-15m, and more.

Further up, the next hurdle awaits at 1.1070, which is the convergence of the BB 4h-Upper and the Fibonacci 38.2% one-month.

Next, 1.1105 is the next cap, where the Fibonacci 161.8% one-day and the Pivot Point one-week Resistance 1 meet the price.

Looking down, weak support awaits at 1.0990, which is the confluence of the previous daily low and the Fibonacci 61.8% one-week.

Lower, some support awaits at 1.0962, which is the previous monthly low.

Even lower, the downside target is 1.0885, which is where the Pivot Point one-month Support 1 hits the price.

Here is how it looks on the tool:

EUR USD September 12 2019 technical confluence

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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