EUR/USD has been on a roll, taking advantage of the dollar’s weakness to gain further ground and topping 1.19 at one point. The world’s most popular currency pair trading at the highest levels since June 2018. Europe’s coronavirus situation is better than that in the US and America’s politicans are still struggling to reach an agreement on fsical stimulus – something EU leaders agreed to last week.
The greenback’s latest blow came from poor Gross Domestic Product data I– a plunge of 32.9% annualized. Additional figures and end-of-month flows are due out. How is euro/dollar positioned on the charts?
The Technical Confluences Indicator is showing that EUR/USD faces resistance at 1.1928, which is the convergence of the Bollinger Band 1h-Upper and the Pivot Point one-day Resistance 2.
The next hurdle is already the psychologically significant 1.20 level – which is where the Pivot Point one-week Resistance 3 and the P one-day R3 meet up.
Support awaits at 1.1854, which is a point of confluence including the previous daily high and the BB one-day Upper.
Further down, the next cushion is 1.1798, which is a juncture including the Simple Moving Average 10-4h and the Fibonacci 38.2% one-day.
Here is how it looks on the tool:
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.
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