EUR/USD path of least resistance is down after the NFP blow

The EUR/USD kicks off the week around the low levels it closed the previous one. Can it recover? It will not be that easy as our analysis demonstrates.

The Technical Confluences Indicator shows that the pair faces a wall of resistance around 1.1587. The dense cluster, which spans some 20 pips, consists of the potent lines such as the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, the SMA 100-15m, the Fibonacci 38.2% one-week, the SMA 200-4h, the Fibonacci 23.6% one-day, the Bolinger Band one-day Middle, and the Fibonacci 61.8% one-month.

Attempting to reach that congestion may also run into trouble as significant resistance awaits at 1.1550 which is the convergence of the Bolinger Band 15m-Middle, the SMA 10-15m, the SMA 10-15m, the SMA 20-15m, the and the SMA 10-1h.

Some support awaits at 1.1503 where the Pivot Point one-week Support 1 is notable. For a better cushion, the EUR/USD will have to fall all the way to 1.1467 where we see the Fibonacci 38.2% one-month, a line of high importance.

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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