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EUR/USD: Door open to higher levels

EUR/USD  opened the week with a gap following the successful summit between Presidents Donald Trump and Xi Jinping. What’s next?

The  Technical Confluences Indicator  shows that the pair broke above a significant line of resistance at  1.1350  which now turns into support. The level is a dense cluster that includes the Bollinger Band 4h-Middle, the Simple Moving Average 100-4h, the BB 15m-Middle, the Fibonacci 38.2% one-day, and the SMA 1h.

The move opens the door to higher levels. At  1.1395  we see the confluence of the Pivot Point one-week Resistance 1 and the Fibonacci 38.2% one-month.

Further above, the next target is  1.1438  where we see the convergence of the Fibonacci 23.6% one-month, the Bollinger Band 4h-Upper, and the Pivot Point one-day Resistance 2.

Looking back down, we see further substantial support at  1.1332which is the SMA 5-4h, the Fibonacci 23.6% one-day, and the Fibonacci 61.8% one-month.

All in all, the upside is more appealing than the downside.

Here is how it looks on the tool:

EUR USD Technical confluence December 3 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.