EUR/USD has room to extend its gains

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EUR/USD has been enjoying US dollar weakness related to the trade war with China to reach 1.1200. Can it extend its gains? The world’s most popular currency pair enjoys solid support.

The Technical Confluences Indicator is showing that EUR/USD is underpinned by solid support at around 1.1176 which is a dense cluster of lines including the Simple Moving Average 100-4h, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, and the Bollinger Band one-day Middle.

Looking up, noteworthy resistance awaits at 1.1252 which is the convergence of the Fibonacci 161.8% one-week, the previous 4h high, and the Fibonacci 61.8% one-month.

Even high, the next target is 1.1310 where we see the confluence of the BB 1d-Upper, the PP 1w-R3, and the SMA 200-1d.

Below 1.1176, EUR/USD may find support at 1.1129 where three SMAs meet: the 5-1d, the SMA 50-4h, and the SMA 200-1h.

Here is how it looks on the tool:

EURUSD confluence levels August 6 2019

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.

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About Author

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 the 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.

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