Ahead of the ECB, EUR/USD has its limits set out


EUR/USD has returned to the low 1.1200s after a round-trip to the upside that was triggered by mixed US data. The focus now shifts to Europe with the ECB set to respond to the latest developments. The world’s most-popular currency pair has its technical battle lines set.

The Technical Confluences Indicator shows that EUR/USD faces resistance at 1.1254 where it faces the confluence of the Fibonacci 38.2% one-day, the Pivot Point one-month Resistance 1, the Simple Moving Average 200-15m, and the SMA 50-1h.

Further above, the pair faces another cap at 1.1279 where the SMA 100-1d, the PP 1d-R1, and the Fibonacci 61.8% one-day meet.

Looking down, weak support awaits at 1.1220 where the PP 1w-R1 and the previous weekly high converge.

Strong support awaits at the 1.1170-1.1.1181 range where a dense cluster of lines awaits the pair and includes the SMA 100-4h, the Fibonacci 61.8% one-week, the BB 4h-Lower, and the Fibonacci 38.2% one-month.

Here is how it looks on the tool:

EUR USD confluence analysis June 6 2019

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.

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About Author

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 the 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.

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