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EUR/USD does not have much support after the fall

According to the  Technical Confluences Indicator, the EUR/USD may find solid support only at around  $1.2330. The area is a dense cluster of technical lines: Fibo 38.2% 1w, the SMA200-h1, the SMA50-4h, the SMA200-4h, the SMA5-1d, Bolinger Band 1d-Middle Stdv 2.2, the Fibo 38.2% one month, the SMA10-1d, and the SMA50-1d.

The significant confluence makes it a fortified area of support but above this level, there is not too much on the way down.

Looking up, significant resistance is at  $1.2415, a cluster of lines including the Fibo 61.8%, one-month, Pivoit Point 1w R1, the SMA10-4h, and the Fibo 38.2% 1d. The next line to watch is  $1.2445, where the Bolinger Band 1h-Middle, Stdv 2.2, Pivot Point one-month R1, the SMA5-4h, and the Bolinger Band 1d Upper all converge.

These three technical confluence levels are clear and may determine the next moves.

Here is how it looks on the tool:

EURUSD confluence levels March 27 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. 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

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.