EUR/USD Technical Analysis: Upside momentum is waning

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EUR/USD broke out of range and topped 1.1500 on Wednesday. While it settled above the line, it failed to reach higher ground. And now, it may have lost momentum as resistance is stronger than support.

The Technical Confluences Indicator shows that the pair is capped at 1.1542 where we see a dense cluster including the Bollinger Band one-day Upper, the Fibonacci 61.8% one-day, the Pivot Point one-month Resistance 1, the BB 1h-Upper, and the BB 15m-Upper.

If it breaks higher, the next resistance line is around 1.1626 which is the convergence of the PP one-month R2, the Fibonacci 161.8% one-day, and the Simple Moving Average 200-one-day.

Support awaits at 1.1487 where we see the previous day’s low, last month’s high, the SMA 100-one-day, the Fibonacci 61.8% one-week, and the SMA 100-1h.

Further support is at 1.1434 which is the confluence of the PP one-day S2, the SMA 100-4h, and the Fibonacci 23.6% one-month.

All in all, resistance is stronger than support. 

Here is how it looks on the tool:

EUR USD technical analysis confluence January 11 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.

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About Author

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 the 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.

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