EUR/USD opened the week with a gap following the successful summit between Presidents Donald Trump and Xi Jinping. What’s next?
The Technical Confluences Indicator shows that the pair broke above a significant line of resistance at 1.1350 which now turns into support. The level is a dense cluster that includes the Bollinger Band 4h-Middle, the Simple Moving Average 100-4h, the BB 15m-Middle, the Fibonacci 38.2% one-day, and the SMA 1h.
The move opens the door to higher levels. At 1.1395 we see the confluence of the Pivot Point one-week Resistance 1 and the Fibonacci 38.2% one-month.
Further above, the next target is 1.1438 where we see the convergence of the Fibonacci 23.6% one-month, the Bollinger Band 4h-Upper, and the Pivot Point one-day Resistance 2.
Looking back down, we see further substantial support at 1.1332 which is the SMA 5-4h, the Fibonacci 23.6% one-day, and the Fibonacci 61.8% one-month.
All in all, the upside is more appealing than the downside.
Here is how it looks on the tool:
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.