EUR/USD has limited room to rise after the Sunday gap was closed

EUR/USD  kicked off the week with a weekend gap to the upside but was unable to hold onto the gains. What’s next?

The  Technical Confluences Indicator  shows that the pair is struggling with  1,1368  where we see a dense cluster of lines including the Fibonacci 61.8% one-week, the Bollinger Band 15min-Middle, the Fibonacci 23.6% one-day, the Simple Moving Average 200-4h, the SMA 50-15m, and the BB 15min-Upper.

Robust resistance awaits the pair at  1.1393where we see the convergence of the SMA 100-1d, the Fibonacci 61.8% one-day, the Fibonacci 61.8% one-month, and the BB 1h-Upper.

If EUR/USD overcomes that level, the next upside target is  1.1493  where last month’s high converges with the PP 1m-R1.

Support is at  1.1333  which is the confluence of last week’s low, the Fibonacci 38.2% one-month, and the SMA 100-4h.

The downside target is  1.1245  where we see last month’s low, the PP 1m-S3, and the PP 1m-S1 meet.

Here is how it looks on the tool:

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.