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Ahead of the ECB, EUR/USD has more room down than up

The  EUR/USD  managed to claw its way back up above 1.1400 but still hesitates ahead of the all-important ECB decision.

The  Technical Confluences Indicator  shows that the world’s most popular currency pair faces resistance around  1.1433  where we see the convergence of the Simple Moving Average 10-4h, last week’s low, the SMA 200-15m, and the SMA 50-1h.

Stronger resistance awaits at  1.1482  which is the confluence of the Pivot Point one-month Support 1, and the Fibonacci 23.6% one-week, both significant lines of resistance.

Looking down, a cluster of support is seen around  1.1396  which is the meeting point of the Bollinger Band one-day Lower, the Pivot Point one-day Support 2, and the SMA 5-4h.

Should the pair tumble down, the area around  1.1350  could halt the fall. The cluster consists of the Fibonacci 161.8% one-month, the Pivot Point one-day Support 3, and the Pivot Point one-month Support 2.

Here is how it looks on the tool:

EUR USD technical confluence October 25 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.