EUR/USD is trading in steadily on Black Friday, holding above the 1.1400 level but not going anywhere fast. While the pair is entrenched in a narrow range, there is a higher chance of an upside movement than a downside one.
The Technical Confluences Indicator shows that that significant resistance awaits at 1.1433 where we see the convergence of the Fibonacci 23.6% one-day, the Simple Moving Average 200-4h, and the Fibonacci 38.2% one-month.
If the pair overcomes this major hurdle, it faces weaker caps on the upside. The most notable resistance is only at 1.1504 which is the meeting point of the SMA 50-one-day and the Fibonacci 61.8% one-month. Further above, 1.1527 is where we see the Pivot Point one-month Resistance 1. At 1.1557 the pair encounters the SMA 100-one-day and the Pivot Point one-week R2.
Looking down, EUR/USD has a lot of support: 1.1409 is a dense cluster including the SMA 5-one-day, the Bollinger Band 4h-Middle, the BB 1h-Middle, the BB 15m-lower, the SMA 200-15m, the SMA 10-4h, and the Fibonacci 61.8% one-day.
At 1.1380 we see another considerable cushion including the SMA 100-4h, the Fibonacci 23.6% one-month, the BB one-day Middle, and the Fibonacci 23.6% one-week.
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.
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