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EUR/USD faces a hard ceiling if it tried to rise again

The  EUR/USD  is back to the well-known range after testing the upside. The next attempt may face a hard wall.

The  Technical Confluences Indicator  shows that the pair is mired around  1.1760  in a dense cluster which includes the Fibonacci 23.6% one-week, the Bolinger Band 15m-Upper, the Simple Moving Average 50-one-hour, the SMA 5-4h, the SMA 200-15m, the Bolinger Band one-hour Middle, and the Fibonacci 61.8% one-day.

If the pair makes its way to the upside, it may get stuck around  1.1810  or beforehand. We see a congestion including the highest in a week, the highest in a month, the Bolinger Band 4h-Upper, the Pivot Point one-day Resistance, and more. A break above the line will open the door to the upside.

Looking down, some support awaits at  1.1735  which consists of the BB 15m-Lower, the 4h-Low, and the Fibonacci 38.2% one-week.

Further down, there are quite a few lines but the only significant support level is at  1.1620  which is the convergence of the powerful PP one-day Support 3 and last week’s low.

Here is how it looks on the tool:

EUR USD September 25 2018 technical confluence levels

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.