EUR/USD is stuck, but the upside is more appetizing

The EUR/USD recovered from the lows as Germany’s political crisis ended with a compromise. What’s next for the euro?

The Technical Confluences Indicator shows that there are good reasons why the EUR/USD is trading around the middle of the 1.6000s. 1.1646 is the convergence of the Fibonacci 38.2% one-month, the Simple Moving Average 5-15m, the SMA 200-15m, the SM 50-1h, the SMA 10-4h, the Bolinger Band 15m-Upper, the Fibonacci 38.2% one-week, and more.

Substantial resistance is at 1.1694 which is the confluence of the Pivot Point one-day Resistance 1, the one-day high, and the Bollinger Band 1h-Upper. Higher, 1.1725 is notable for the Fibonacci 61.8% one-month, but it is not a strong line.

Yet looking at the tool, levels of support are much stronger. The pair has a lot of support on the way down with 1.1592 standing out and overpowering the resistance line mentioned earlier. This is the meeting point of the Fibonacci 23.6% one-month, the one-day, the Bolinger Band one-hour Lower, and the Fibonacci 61.8% one-week.

Further down, 1.1510 is where the Bolinger Band one-day Lower and the one-month low converge.

All in all, resistance lines are weaker than support lines.

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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