EUR/USD path of least resistance is down ahead of the Non-Farm Payrolls – Confluence Detector
EUR/USD has already lost more than 50% of its gains from 1.0640 to 1.1150. Will it continue lower? The all-important US Non-Farm Payrolls awaits traders.
The Technical Confluences Indicator is showing that robust resistance awaits at 1.0879, which is the convergence of the Fibonacci 38.2% one-day and the previous yearly low.
The next cap is at 1.0913, where three Simple Moving Averages meet: the 10-one-day, the 200-15m, and the 50-15m.
The upside target is 1.0970, which is the confluence of the Fibonacci 38.2% one-month and the previous daily high.
Support awaits at 1.0834, which is a juncture including the Fibonacci 61.8% one-week and the previous 4h-low.
Further down, the downside target is 1.0801, where the Pivot Point one-week Support 1, the Bollinger Band 1h-Lower, and the PP one-day S1 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.
