EUR/USD rally may be reaching its limits at 1.1650
Daily Look

EUR/USD rally may be reaching its limits at 1.1650

The EUR/USD is on the rising, staging a significant recovery and battling 1.1600. In the past, such movements have been dead-cat bounces. If this time is different, the pair may have more room to run.

The  Technical Confluences Indicator  shows that the most significant convergence of technical lines is around  1.1650, which is the meeting point of the Simple Moving Average 5–one day, the one-month low, the one-week low, and the SMA 100-1h.

A break of that line opens the door to  1.1720  which is the confluence of the Fibonacci 38.2% one-week, the SMA 10-1 day, and the Fibonacci 161.8% one-day.

Some support awaits at  1.1590  where the Fibonacci 61.8% one-day, the SMA 5-15m, and the Pivot Point one-week Support 1 meet.

The next cushion is around  1.1542  which is the Fibonacci 23.6% one-day, the SMA 10-1h, the SMA 5-4h, and the Bolinger Band one-hour-Middle among others.

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

Yohay Elam

Yohay Elam

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 a 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.