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After the downfall, EUR/USD faces limits at 1.1650 and 1.1440

After the  EUR/USD  suffered the biggest fall since Donald Trump was elected President, it is looking for the next move: a recovery or further falls? The targets look clear.

The  Technical Confluences Indicator  shows that a recovery will face a dense cluster of resistance at  1.1650  which is the convergence of the Fibonacci 23.6% one-month, the one-week low, and the Simple Moving Average 100-15m.

Should it overcome this barrier, the next big target is  1.1714  which is the confluence of the Simple Moving Average 10-4h, the SMA 100-4h, and the Bolinger Band one-day Middle Stdv. 2.2.

Lokking down, the  1.1510  level is notable as it is the 2018 low and the lowest since July 2017. Just under 1.1500, the pair may scattered levels of support. Yet the most important line to watch is  1.1440which is the potent Pivot Point one-month Support 1.

Here is how it looks on the tool:

EUR USD technical analysis confluence June 15 2018

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

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.