EUR/USD has been riding higher amid lower US yields, as investors fear the economic impact of the coronavirus outbreak. Where next?
The Technical Confluences Indicator is showing that euro/dollar faces mild resistance around 1.1235, which is the convergence of the previous daily high, the Bollinger Band 15min-Middle, the Simple Moving Average 5-15m, the SMA 5-1h, and more.
However, a significant cap awaits only at 1.1287, where the potent Pivot Point one-month Resistance 2 and the pivotal Fibonacci 161.8% one-month.
Support awaits at 1.1216, which is the confluence of the previous 4h-low and the PP one-week R2. This cushion is stronger than the immediate resistance line.
Further down, additional support is at 1.1165, which is a juncture of lines including the PP one-month R1, the BB 4h-Middle, the Fibonacci 61.8% one-day, and the BB 4h-Lower.
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.
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