EUR/USD has retreated from the highs in the first day of 2020 but is holding up above 1.12. Where next for the world’s most popular currency pair?
The Technical Confluences Indicator is showing that EUR/USD is trading above solid support at 1.1187, which is the convergence of the Simple Moving Average 5-one-day and the Fibonacci 23.6% one-month.
It is followed by even stronger support at 1.1146, which is a dense cluster including the SMA 10-one-day, the SMA 200-1d, the Fibonacci 38.2% one-week, the SMA 200-1h, and the Fibonacci 38.2% one-month.
Looking up, resistance is weaker, awaiting at 1.1240, which is the confluence of the Fibonacci 23.6% one-day and the previous monthly high.
The next line to watch is close, at 1.1269, which is where the Pivot Point one-week R2 meets the PP one-day R1.
Here is how it looks on the tool:
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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