EUR/USD does not look good ahead of the Non-Farm Payrolls

The EUR/USD managed to stabilize after the downfall and hugs the 1.1500 level. Markets are awaiting the all-important US Non-Farm Payrolls report which carries higher expectations than usual. What’s next? Resistance is stronger than support.

The Technical Confluences Indicator shows that the pair will find it hard to climb above 1.1500 as many technical resistance lines are in its way with a culmination at 1.1530. The former triple-bottom is also the convergence of the Fibonacci 23.6% one-day, last month’s low, the 4h-high, the Bollinger Band 1h-Upper, the Fibonacci 38.2% one-day, the Simple Moving Average 200-15m, the SMA 50-1h, and the Bollinger Band 15m-Upper.

If the pair surges above 1.1530, the ambitious upside target would be 1.1640 where we see a congestion including the SMA 200-4h, the SMA 100-one-day, the Bollinger Band one-day-Middle, the Fibonacci 61.8% one-month, the Fibonacci 23.6% one-week, and the Pivot Point one-day R1.

Looking down, we see soft support around 1.1475 which is the confluence of the PP one-day S1, the BB one-day Lower, the BB 4h-Lower, and the PP one-month S1.

Lower, weak support is at 1.1415 where we see meeting point of the Fibonacci 161.8% one-day, and the Pivot Point one-week S2.

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

Leave a Reply