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EUR/USD  has bounced off the new two-year lows after US ISM Manufacturing Purchasing Manufacturing Index dropped below 50 and reflected a contraction in the critical sector. Can the world’s most popular currency pair move extend its recovery?

The  Technical Confluences Indicator  is showing that EUR/USD enjoys significant support at 1.0965, where we see a dense cluster including the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, the previous monthly low, the previous weekly low, the Bollinger Band 1h-Middle, the BB 1d-Lower, the Fibonacci 23.6% one-day, and the BB 15min-Lower.  

Looking up, some resistance awaits at 1.1016, where the Fibonacci 23.6% one-week meets the SMA 5-1d.  

Several junctures of resistance await on the way up, with the most significant one awaiting at 1.1073, which is the where we see the confluence of the Fibonacci 61.8% one-week, the SMA 100-4h, and the Fibonacci 38.2% one-month.

Below 1.0965, the next support line is 1.0890, where the Pivot Point one-month Support 1 and the PP 1d-S3 converge.

Here is how it looks on the tool:

EUR USD September 4 2019 technical confluence

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