EUR/USD battle lines set for the next big move


After the EUR/USD failed to breach nor reach $1.2000 (as forecast here), the pair dropped to lower ground and found some stability. This stability may not last too long as the US Retail Sales are coming up. The data can go in either direction and the EUR/USD has its battle lines drawn.

The Technical Confluences Indicator shows a dense cluster of resistance at $1.1954. This is the convergence of the  Simple Moving Average 200-15m, the SMA 50-1h, the SMA 10-4h, and the Fibonacci 38.2% one-day.

Should the pair break this line, the next substantial congestion is at $1.2022 which is the meeting point of potent levels: the SMA 200-1d, the SMA 100-4h, and the Pivot Point one-day Resistance 2.

On the downside, initial support awaits at $1.1904, which is the confluence of the SMA 5-1d, the Bolinger Band 1h-Lower (Stdv. 2.2), and the Pivot Point one-day Support 1.

Much lower, $1.1822 is the lowers point in 2018 and also the Pivot Point one-month Support 2.

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. This means 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

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About Author

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 the 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.

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