Home EUR/USD ahead of the Fed: Tight but ready to rock
Forex News Today: Daily Trading News

EUR/USD ahead of the Fed: Tight but ready to rock

The  EUR/USD  is locked between dense clusters of technical levels as tension grows ahead of the all-important decision of the Federal Reserve. Fed Chair Powell and his colleagues are indeed able to send the pair out of range.

The  Technical Confluences Indicator  shows that the EUR/USD is battling the  1.1760  area where we see a congestion of the following levels: the Bolinger Band 15m-Lower, the BB 4h-Middle, the Fibonacci 23.6% one-week, the Simple Moving Average 200-15m, the SMA 50-one-hour, the 15m-low, the 1h-low, the SMA 5-1h, and the SMA 10-4h. It is further supported below by the BB 1h-lower, the SMA 100-1h, the Fibonacci 61.8% one-day, and the 4h-low.

Lower, we see weaker support at  1.1733  which is the confluence of the BB 4h-lower, the Fibonacci 38.2% one-week, and the Pivot Point one-day Support 1.

The upside is quite dense as well. At  1.1795  we see the convergence of the Pivot Point one-month Resistance 1, the one-day high, the BB 1h-Upper, the BB 4h-Upper, and the BB one-day Upper.

Close by, at  1.1807  we see the convergence of the monthly high, the weekly high, PP one-day Resistance 1.

Weak resistance then awaits at  1.1831  which is the convergence of the PP one-day Resistance 2, and the PP one-week R1.

Here is how it looks on the tool:

EUR USD Technical confluence September 26 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.