EUR/USD needs to hold onto support at 1.0972 to weather the dollar storm – Confluence Detector
EUR/USD has been on the back foot as a turbulent quarter is drawing to an end. How is the world's most popular currency pair positioned on the charts?
The Technical Confluences Indicator is showing that euro/dollar has robust support at 1.0972, which is the convergence of the Fibonacci 61.8% one-month, the Simp[le Moving Average 5-one-day, and the Fibonacci 38.2% one-week.
Further down, the next significant cushion is at 1.0880, where the previous yearly, the SMA 50-4h, the SMA 200-1h, and the SMA 10-one-day meet up.
Resistance levels are spread out, with one hurdle awaiting at 1.1046, which is the confluence of the Fibonacci 23.6% one-day, the previous 4h-high, and the 100-day SMA.
Further up, 1.1091, is where the Fibonacci 61.8% one-day and the previous monthly high 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.
