EUR/USD continues its quiet climb as the focus shifts from Brexit to the Fed decision and Europe’s troubles are out of the limelight. Where can it go to? A significant resistance line awaits the pair, but the upside seems more appetizing.
The Technical Confluences Indicator shows that resistance awaits at 1.1364 which is the meeting point of the previous day’s high, the Pivot Point one-day Resistance 1, the Simple Moving Average 50-1d, and the SMA 100-1d.
If the pair breaks higher, the next target is 1.1422 where the Pivot Point one-week R2 meets the Bollinger Band 1d-Upper.
Even higher, 1.1485 is where the SMA 200-1d and the previous month’s high converge.
On the downside, the pair has lots of support. The 1.1322-1.1334 region is a dense cluster consisting of the Fibonacci 38.2% one-month, the SMA 200-15m, the SMA 50-1h, the previous 4h-low, the BB 4h-Middle, the BB 1h-Lower, the SMA 5-1d, the previous day’s low, the PP one-day S1, and the BB 1d-Middle.
Close by, another considerable cushion awaits at 1.1299 where we see the confluence of the Fibonacci 23.6% one-month, the BB 4h-Lower, the Fibonacci 38.2% one-month, the SMA 200-1h, and the Fibonacci 161.8% one-day.
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.
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