EUR/USD path of least resistance is up amid US-Sino tensions – Confluence Detector
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EUR/USD path of least resistance is up amid US-Sino tensions – Confluence Detector

EUR/USD  is trading above 1.1050, looking for a new direction as US-Sino tensions rise around the Senate’s bill supporting Hong Kong protesters. How is it positioned on the chart?

The  Technical Confluences Indicator  is showing that EUR/USD is capped around 1.1080, which is a dense cluster including the Simple Moving Average 10-1h, the Bollinger Band 1h-Middle, the Fibonacci 38.2% one-day, the SMA 5-4h, the Pivot Point one-week Resistance 1, the Fibonacci 23.6% one-day, the BB 1h-Upper, and the previous daily high.  

Further above, the upside target is 1.1178, which is the convergence of the BB 1d-Upper, the SMA 200-1d, and the previous monthly high.  

Below, support awaits at 1.1045, which is the confluence of the PP 1d-S3, the Fibonacci 23.6% one-week, the SMA 50-1d, the SMA 5-1d, the Fibonacci 161.8% one-day, and the SMA 100-1h.  

Lower, 1.0965 is the meeting point between the Pivot Point one-month Support 1 and the PP 1w-S2.  

Here is how it looks on the tool:

EUR USD confluence analysis November 20 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.

Learn more about Technical Confluence

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