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The  EUR/USD  tumbled down below 1.1500 as the US Dollar swept higher alongside rising bond yields, upbeat data, and a hawkish speech by Powell. What’s next?

The  Technical Confluences Indicator  shows that the world’s most popular currency pair is struggling with a cluster of resistance around  1.1485. The congestion consists of the Bollinger Band 15m-Upper, the BB 4h-Lower, the Simple Moving Average 5-15m, the Pivot Point one-month Support 1, and the BB one-day Lower.

If the pair can move higher and recapture 1.1500, the next cap is quite close.  1.1518  is the convergence of the all-important Fibonacci 38.2% one-day, the SMA 100-15m, the SMA 5-4h, and the PP one-week S1.

Looking down, the confluence areas of support are quite feeble. At  1.1422  we see the meeting point of the PP one-week S2 and the PP one-day S1.

More substantial support is only at  1.1363  where we see the PP one-month S2 and the Fibonacci 161.8% one-month converge.

Here is how it looks on the tool:

EURUSD Technical confluence October 4 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