EUR/USD falling towards critical support at 1.1300, targets 1.1235 next – Confluence Detector
|The EUR/USD is on the back foot after the Federal Reserve remained optimistic about the economy. Earlier, the greenback recovered from the initial drop resulting from the Mid-Terms.
The Technical Confluences Indicator shows that the pair has some weak support 1.1341 where we see the confluence of the Fibonacci 23.6% one-week, the Bollinger Band 15m-Lower, the Simple Moving Average 5-15m, and the Bolinger Band 1h-Lower.
The next support line is a crucial one: 1.1300 is not only a round number but also the convergence of the Pivot Point one-month Support 1, last week's low, last month's low, and the Pivot Point one-day Support 2.
If the pair loses 1.1300, the next level to watch is 1.1235 which is the meeting point of two Pivot Points: the one-week S3, and the one-week Support 2.
A recovery will send the EUR/USD to resistance at 1.1388 which is a dense cluster including the SMA 10-one-day, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-month, the SMA 5-4h, the Fibonacci 23.6% one-day, the SMA 200-1h, and the SMA 50-4h.
1.1424 is where the PP 1-day, R1, the BB 4h-Middle, the Fibonacci 38.2% one-month, the SMA 50-1h, and the SMA 200-15m.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.