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EUR/USD path of least resistance is down after US CPI

EUR/USD  has been unable to extend its gains after US inflation beat expectations. Where next for the world’s most popular currency pair?

The  Technical Confluences Indicator  shows that EUR/USD is mired in the mud of heavyweight technical levels around  1.1273. These include the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-day, the Simple Moving Average 50-15m, the SMA 100-15m, the Bollinger Band 15min-Lower, the SMA 10-one-day, the previous 4h-high, the Fibonacci 23.6% one-day, and more.

Looking up, it faces a hurdle at  1.1320  which is the meeting point of the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week, and the Pivot Point one-day Resistance 3.

Support awaits at  1.1220, which is the convergence of the Pivot Point one-month Support 1, the Fibonacci 161.8% one-day, the PP one-day Support 2, and more.

Further support awaits at  1.1168  – but this is already a weak cushion. It consists of the PP one-week S1 and the  previous monthly low.

All in all, support is weaker than resistance.

Here is how it looks on the tool:

EUR USD confluence lines July 12 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.

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.