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EUR/USD looks perky on the first day of winter

EUR/USD  holds onto to its high ground on the last full trading day before the Christmas holiday. Can it enjoy a “Santa Rally” and push even higher? The odds are in favor of the pair.

The  Technical Confluences Indicator  shows that support is stronger than resistance. Euro/dollar has significant support at around  1.1440  where we see a dense cluster of lines including the all-important Fibonacci 38.2% one-day, the Bollinger Band one-day Upper, the Fibonacci  23.6% one-month, the Simple Moving Average 200-15m, the SMA 50-1h, the SMA 10-4h, and the BB 1h-Lower.

Another considerable convergence of potent lines awaits at  1.1392  where we see the SMA 100-1h, the SMA 50-one-day, the Fibonacci 38.2% one-month, and the Pivot Point one-day Support 1.

Looking up,  1.1476  is the first notable resistance area where we see the meeting point of the BB 4h-Upper, the BB 1h-Upper, and the Pivot Point one-month Resistance 1.

The next notable cap is at around  1.1506, already above the round number. We see the confluence of the PP one-day R1, the PP 1w-R2, and last month’s high.

All in all, the path of least resistance is to the upside.

Here is how it looks on the tool:

EUR USD technical analysis December 21 2018

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

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.