EUR/USD faces a hard ceiling if it tried to rise again

The EUR/USD is back to the well-known range after testing the upside. The next attempt may face a hard wall.

The Technical Confluences Indicator shows that the pair is mired around 1.1760 in a dense cluster which includes the Fibonacci 23.6% one-week, the Bolinger Band 15m-Upper, the Simple Moving Average 50-one-hour, the SMA 5-4h, the SMA 200-15m, the Bolinger Band one-hour Middle, and the Fibonacci 61.8% one-day.

If the pair makes its way to the upside, it may get stuck around 1.1810 or beforehand. We see a congestion including the highest in a week, the highest in a month, the Bolinger Band 4h-Upper, the Pivot Point one-day Resistance, and more. A break above the line will open the door to the upside.

Looking down, some support awaits at 1.1735 which consists of the BB 15m-Lower, the 4h-Low, and the Fibonacci 38.2% one-week.

Further down, there are quite a few lines but the only significant support level is at 1.1620 which is the convergence of the powerful PP one-day Support 3 and last week’s low.

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