EUR/USD maintains its positive tone and picks up market value after the UK elections and the positive economic data coming from the German economy. This morning’s IFO data is giving the market a glimpse of a positive start to the year for the European economy’s locomotive.
The EUR/USD pair is trading at 1.113 and remains a long way from the significant confluence of $1.1155. At this price level, the 61.8% daily and the 38.2% weekly of the Fibonacci retracement system await to challenge the bulls.
The presence of the next level of the SMA200 in the daily range reinforces the resistance level. Above and up to yesterday’s high of $1.12 there are more Fibonacci retracement levels in the weekly and daily ranges.
The current peace of mind in the price also comes from the strong support shown by the Confluence indicator. At the $1.1121 price level, we can find the daily S1 level of the Pivot Points system, the 61.8% weekly and monthly level of the Fibonacci retracement system.
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 neighbours. In these cases, the tool signals resistance in apparently empty areas.
Learn more about Technical Confluence
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