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Where next for the EUR/USD after the big fall? Targets

After the EUR/USD fell off the  cliff described on Thursday, it is getting used to new lows. The  Technical Confluences Indicator  shows the new levels to  watch on the downside. $1.2060  is the convergence of the Pivot Point one-week Support 3, the PP one-day S1 and the 15m low.

Further below, strong support awaits just below the round number. At $1.995  we see the potent Pivot Point one-month Support 2 and the  Simple Moving Average 200 one-day. Even lower, the next cushion awaits at $1.19655, where the Fibonacci 161.8% one-month meets the Pivot Point one-day S3.

Looking up, we see much denser congestion areas. The $1.2090  level is the confluence of the SMA10-15m, the one-day high, the Bolinger Band one-hour Lower (Stdv. 2.2), the Bolinger Band 15m-Middle, and the SMA50-15m. It is closely followed by another cluster of resistance lines at $1.2120: the BB 1h-Middle, the SMA5-4h, the Fibo 23.6% one-day, and the Bolinger Band 15m-Upper.

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. 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.

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.