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EUR/USD under pressure and has more room to fall

EUR/USD  has been consolidating its losses in the mid-1.1300s and is looking for a new direction. It now awaits critical inflation data from Germany and the final first-quarter GDP from the US. What’s next?

The  Technical Confluences Indicator  shows EUR/USD faces robust resistance at around  1.1365  which is a dense cluster of technical lines including the Simple Moving Average 5-one-day, the SMA 5-15m, the Fibonacci 61.8% one-day, the Fibonacci 161.8% one-month, and more.

Further up, the world’s most popular currency pair may stall at  1.1416  which is the convergence of the Pivot Point one-day Resistance 2, the PP 1m-R3, the BB one-day-Upper, and the BB 4h-Upper.

Looking down, somewhat weaker support awaits at  1.1349  which is the confluence of the previous daily low, the SMA 200-1d, the BB 1h-lower, and the BB 4h-lower.

Further down, the next cushion awaits at  1.1305  where the Fibonacci 38.2% one-week converges with the SMA 50-4h.

All in all, the path of least resistance is down.

Here is how it looks on the tool:

EUR USD confluence detector June 27 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.

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.