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EUR/USD  is trading lower in the wake of Tuesday but its losses may reach their limits as a significant support line awaits.

The  Technical Confluences Indicator  shows a considerable convergence of lines awaits at  1.1437  where we see the previous 4h-low, the Fibonacci 23.6% one-month, the Simple Moving Average 10-4h, the SMA 50-4h, the Fibonacci 61.8% one-day, and the Bollinger Band 1h-Lower.

Another cushion is close by  1.1413  is the confluence of the Fibonacci 38.2% one-week, the SMA 5-one-day, the SMA 100-1h, the SMA 100-4h, and the BB 4h-Middle.

Looking up, we see a cap at  1.1485  which is a juncture including the Fibonacci 61.8% one-week, the BB 4h-Upper, and yesterday’s peak.

The next hurdle is at  1.1544  where the Pivot Point one-month Resistance 1 and the PP 1d-R2 converge.

All in all, the path of least resistance is to the upside despite the slide.

Here is how it looks on the tool:

EUR USD Technical confluence January 8 2019 chart

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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