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EUR/USD has room to fall on a busy day

EUR/USD  is trading around 1.1200, off the highs it had experienced earlier this week. German GDP has come out as expected and euro-zone growth data is now expected. More importantly, US retail sales are due later in the day. How is the currency pair positioned?

The  Technical Confluences Indicator  shows that euro/dollar faces stiff resistance at  1.1219  which is a dense cluster of lines including the Simple Moving Average 5-1d, the SMA 100-15m, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-week, the SMA 10-4h, the SMA 100-1h, and more.

If it breaks higher, it faces many caps on its way up and the potential upside target is  1.1330  where the Pivot Point one-month Resistance 1, the previous monthly high, and the SMA 100-1d converge.

Looking down, support awaits at  1.1166  which is the confluence of the Fibonacci 23.6% one-month, previous weekly low, and the PP 1d-S2.

If EUR/USD extends its fall,  1.1115  is the net target. It is the convergence of the PP 1m-S1, the previous monthly low, and the Fibonacci 161.8% one-week.

All in all, resistance is stronger than support, pointing to potential falls.

Here is how it looks on the tool:

EUR USD May 15 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.

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.