EUR/USD ate the low hanging fruit, moving higher from here is hard

The EUR/USD rallied on Trump’s comments about low interest rates. Can it continue moving higher? The pair now faces substantial resistance.

The Technical Confluences Indicator shows that the pair will initially need to win over the 1.1655 level. This is the convergence of the Bolinger Band 4h-Middle, the Fibonacci 23.6% one-day, and the Fibonacci 23.6% one-week.

A move higher will face a congestion of resistance levels at the 1.1683 area where we see the Fibonacci 38.2% one-week, the one-day high, the Simple Moving Average 50-4h, the SMA 200-4h, and the Pivot Point one-day Resistance 1.

Another run higher may send the pair to 1.1724 where we see the confluence of the Fibonacci 61.8% on both the monthly and weekly scopes meet the Bolinger Band 4h-Upper.

Looking down, the pair has some support at 1.1641 which is the Bolinger Band 15m-Lower, the Fibonacci 38.2% one-day and the Fibonacci 38.2% one-month.

However, a slide may find only minor support levels below this point. A considerable cushion is available only at 1.1514 which is where the Fibonacci 161.8% one-day, the Pivot Point one-month Support 1, the Pivot Point one-week S2 and the 2018 low 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.

Learn more about Technical Confluence


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