More resistance than support for the EUR/USD ahead of the NFP

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The Technical Confluences Indicator shows that the battle lines are well-defined toward the all-important release of the US Non-Farm Payrolls.

A congestion of support lines awaits around $1.1950 with the one-day High, the Bolinger Band one-day Lower, and the Pivot Point one-day Support 1. Further support is at $1.1920 which sees the confluence of the Pivot Point one-day S2 and the Pivot Point one-week S2. A break below this level opens the door all the way to $1.1820 which is the one-month S2.

Looking up, the pair faces massive resistance with the first notable confluence around $1.1995 which is the meeting point of the Fibonacci 23.6% one-day, the 4h high, the Bolinger Band 1h-middle and the BB 15m-Upper. $1.2020 is the clustering of the Pivot Point one-week S1 and the Simple Moving Average-5 one-day. Even higher, $1.2060 is the confluence of the one-month low and the one-week low.

Tension is mounting towards the all-important event. See the preview: Employment data not expected to impress

Here is how it looks on the tool:

EUR USD Confluence technical levels May 4 2018

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. This means 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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About Author

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 the 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.

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