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Easier falling than rising for EUR/USD

The  EUR/USD  is trading lower as the US Dollar sweeps the board. While it has some room to recover, the path of least resistance remains to the downside.

The  Technical Confluences Indicator  shows that the most significant hurdle awaits at the  1.1685  region which is the congestion of the potent Fibonacci  38.2% one-day, the Fibonacci 388.2% one-week, the Bolinger Band one-hour-Middle, and the Simple Moving Average 100-15m. This high level leaves room for recovery, but this recovery will not be too easy.

1.1654  is the convergence of the Simple Moving average 10-1h, the SMA 50-15m, the one-day high and the SMA 5-1h. A minor line is  1.1641  which is the SMA 10-15m and the Fibonacci 38.2% one-month.

Looking down, the road is smoother. Some support awaits at  1.1589which is the meeting point of the Fibonacci 23.6% one-month  and the Pivot Point one-day Support 2.

Lower, some support awaits at  1.1557  which is the Bolinger Band one-day Lower before the 2018 nadir of 1.1508.

All in all, it is clear to see that rising is harder than falling.

Here is how it looks on the tool:

EUR USD technical analysis confluence July 18 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.