The EUR/USD is defying gravity, opening the week on a positive note, topping 1.1800. What is next for the world’s most popular currency pair?
The Technical Confluences Indicator shows that potent resistance lines converge around 1.1866. This is the meeting point of the Fibonacci 161.8% one-day, the Fibonacci 61.8% one-month, the Pivot Point one-day Resistance 2, and the Pivot Point one-week Resistance 1.
Further above, the pair may face some resistance at 1.1909 which is the confluence of the Bolinger Band one-day Upper and the Pivot Point one-day Resistance 3.
On the downside, the pair faces plenty of support line. The first notable congestion is around 1.1780 where we see the Bolinger Band 1h-Middle, the Simple Moving Average 5-4h, the Fibonacci 61.8% one-day, and the 4h-high meet.
There are plenty of lines of support on the way down, and the most critical support is at 1.1731 which is the convergence of the 1d-high, the Pivot Point one-day Support 1, the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week and many more.
All in all, the pair has more support than resistance, and this implies a potential upward move, albeit a cautious one.
Here is how it looks on the tool:
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