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EUR/USD has edged higher after weak US data and amid Mid-East tensions. Where next for the world’s most popular currency pair?

The Technical Confluences Indicator is showing that EUR/USD faces fierce resistance at 1.1185, which is the convergence fo the Bollinger Band 4h-Middle, the Pivot Point one-day Resistance 1, the previous daily high, the Fibonacci 38.2% one-week, and the Fibonacci 23.6% one-month.

Strong support awaits at 1.1156, where the Simple Moving Average 10 one-day, the Bollinger Band 1h-Middle, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-week, and the SMA 10-4h. 

Beyond this tight range, the next noteworthy resistance line is at 1.1243, which is the meeting point of the Bollinger Band 4h-Upper, the PP one-day R3, and the previous monthly high.

Lower support awaits at 1.1098, which is a juncture including the Fibonacci 61.8% one-month, the PP one-day S2, the PP 1w-S1, and the SMA 200-4h.

Here is how it looks on the tool:

EUR USD technical confluence January 6

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