EUR/USD is moving up on Cyber Monday, but it may have already clinched the best deals or low hanging fruit. From here on, it faces an uphill battle and a wall of resistance.
The Technical Confluences Indicator shows that the 1.1365 is the convergence of the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, and the Bollinger Band one-day Middle.
Close by, it faces fierce resistance at 1.1383 which is a dense cluster of levels including the Simple Moving Average 50-4h, the Fibonacci 23.6% one-month, the SMA 200-15m, and the Bollinger Band 4h-Middle.
The next wall is at 1.1418 where we see the Fibonacci 61.8% one-week, the SMA 200-4h, Friday’s high, the Pivot Point one-week Resistance 1, and the Fibonacci 38.2% one-month converge.
Looking down, a noteworthy support line awaits only at 1.1300 where we last month’s low and the Pivot Point one-day Support 1 meet.
Lower, the Pivot Point one-week S2 awaits at 1.1229.
All in all, the path of least resistance is to the downside.
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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