EUR/USD path of least resistance is down


EUR/USD is trading below 1.1200, slightly lower as UK and US traders return from their long weekends and as EU leaders meet to take stock of the EU elections and divvy up the top jobs. The technical levels imply EUR/USD may find it hard to recover.

The Technical Confluences Indicator shows EUR/USD faces immediate resistance at 1.1195 where we see the convergence of the Bollinger Band 1h-Middle, the BB 1d-Middle, the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-day, and the Simple Moving Average 50-1h.

The next cap is significant. At 1.1220, the currency pair faces the confluence of the previous weekly high, the previous yearly low, and the previous daily high.

Looking down, support is weaker, with 1.1179 serving as an immediate cushion. It is the meeting point of the following SMAs: the 50-4h, the 200-1h, the 100-1h, and the 5-1d.

The next noteworthy support line is 1.1110 where the previous weekly low and the Pivot Point one-month Support 1 converge.

Here is how it looks on the tool:

EUR USD confluence levels May 28 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.

Get the 5 most predictable currency pairs

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.

Comments are closed.