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EUR/USD: 3 levels below 1.13 as the breakdown looks close

The  EUR/USD  extended its falls and hit new 10-week lows at 1.1311. It still holds on above 1.1300, the 2018 low and also a round number. But for how long? It is time to look below the figure.

The  Technical Confluences Indicator  shows that the world’s most popular currency pair still has some support just above the round number. The Pivot Point one-month Support 1, the Bollinger Band 15m-Lower, and the PP one-day S2 all converge around  1.1310.

If the pair breaks down, some support awaits at  1.1279  which is the Pivot Point one-week. This is only a weak support line.

The next cushion is much lower. At  1.1215  we see the Pivot Point one-week and also served as resistance in 2017.

The third and last line to watch is  1.1197  is the Pivot Point one-month Support 3 and also worked as support last year.

And what a recovery? The EUR/USD faces fierce resistance at around  1.1338  where we see the confluence of the Simple Moving Average 5-4h, the Fibonacci 161.8% one-month, and the SMA 100-15m, among others.

Here is how it looks on the tool:

EUR USD technical confluence October 31 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.