EUR/USD may have reached its limits, tough resistance ahead

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EUR/USD enjoyed a recovery of sorts during the Easter weekend, reaching 1.1250 and staying away from 1.1200. What’s next? The next moves to the upside may be limited.

The Technical Confluences Indicator shows that the pair is struggling around 1.1250 where we see the convergence of the Bollinger Band 15min-Lower, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-week, the previous 1h-low, the BB 1d-Middle, the Simple Moving Average 5-15m, and more.

The next cap is quite close. At 1.1285, EUR/USD faces the juncture of the Pivot Point one-day Resistance 2, the Fibonacci 61.8% one-week, the BB 4h-Upper, the SMA 200-1h, and the Fibonacci 38.2% one-month.

Further up, 1.1350 is the confluence of the Fibonacci 61.8% and one-month, the SMA 100-1d.

Looking down, 1.1222 is the juncture of lines including the previous yearly low, the Fibonacci 161.8% one-day, the BB 4h-Lower, the PP 1d-S2, and the previous weekly low.

Further down, 1.1176 is where 2019 low meets the PP 1w-S2.

Here is how it looks on the tool:

EUR USD technical confluence April 23 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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