EUR/USD path of least resistance is up after the Fed – Confluence Detector
EUR/USD is trading above 1.1150 after the Federal Reserve cut interest rates and signaled a pause. How is the currency pair positioned? It enjoys significant support and may opt for the upside.
The Technical Confluences Indicator is showing that EUR/USD is supported at 1.1131, which is the convergence of the Simple Moving Average 100-on-day, and the SMA 10-4h.
Close by, an even more substantial cushion awaits the pair. At 1.113, we find the confluence of the Fibonacci 61.8% one-day, the Bollinger Band 4h-Middle, and the previous months high.
Additional strong clusters of support await at 1.1067 and 1.1038.
Weak resistance awaits at 1.1218, which is the meeting point of the previous yearly low and the Pivot Point one-week Resistance 3.
The upside target is 1.1270, which is where the Pivot Point one-month Resistance 3 meets the price.
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.
