EUR/USD upside unleashed – next hurdle only 1.1780
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EUR/USD upside unleashed – next hurdle only 1.1780

The EUR/USD is already 200 pips off the lows and in a recovery that cannot be described as a dead cat bounce. Where next?

The  Technical Confluences Indicator  shows that the pair faces only weak cluster of resistance on the way up. The  1.1710 to 1.1720  level features a confluence of several lines: the Fibonacci 38.2% one-week, the 15m high, and the Simple Moving Average one-day.

However, more serious resistance awaits only at  1.1780. This is the convergence of the Simple Moving Average 100-4h, the Pivot Point one-day Resistance 2, and the Pivot Point one-week Resistance 1.

Should the pair break higher, more serious resistance is only around  1.1825  which is the meeting point of the Pivot Point one-month Support 2 and the one week high.

On the downside, some support awaits at  1.1690, which is the confluence of the SMA 10-15m, the SMA 50-4h, and the Fibonacci 23.6% one-week.

Yet the most substantial support level is only at  1.1647  which is the congestion of the one-month low, the one-week low, the SMA 100-15m, the Fibonacci 23.6% one-day, the 4h high, and the Bolinger Band 15 minute Lower.

Here is how it looks on the tool:

EUR USD May 31 confluence levels technical

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.