EUR/USD can extend its falls according to technical levels
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EUR/USD can extend its falls according to technical levels

EUR/USD  succumbed to the strength of the USD, following the upbeat ISM Non-Manufacturing PMI and other data. Where next? The path of least resistance is to the downside.

The  Technical Confluences Indicator  shows that the world’s most popular currency pair is struggling around  1.1295  where we see the convergence of the previous day’s low, the Bollinger Band 15 minutes Lower, the Fibonacci 23.6% one-month, the Simple Moving Average 10-15m, the SMA 5-15m, and the SMA 5-1h.

Fierce resistance awaits at  1.1329  where a dense cluster caps the pair. It consists of the Fibonacci 61.8% one-day, the SMA 50-1h, the previous weekly low, the Fibonacci 38.2% one-month, the BB 1d-Middle, and the BB 1h-Upper.

Further up, another significant resistance line awaits at  1.1365where the SMA 200-4h, the Fibonacci 61.8% one-week, and the PP one-day R2.

Weak support awaits at  1.1276  where the PP 1w-S2 meets the PP 1d-S1 and the Fibonacci 161.8% one-week.

The next noteworthy line is  1.1235  where we see last month’s low, the PP 1m-S3, and the PP 1w-S3.

Here is how it looks on the tool:

EUR USD technical analysis March 6 2019

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.

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.