fxs_header_sponsor_anchor

News

EUR/USD may free-fall if it loses this support line – Confluence Detector

EUR/USD has been remarkably stable amid the Federal Reserve's rate cut and drama in oil markets. How is it positioned as the week draws to a close? 

The Technical Confluences Indicator is showing that EUR/USD has support at 1.1045, which is the convergence of the Fibonacci 38.2% one-week, the Fibonacci 61.8% one-day, the Simple Moving Average 100-1h, the SMA 200-1h, the Bollinger Band 4h-Middle, and the BB one-day Middle. 

If it falls below this level, the world's most popular currency pair has only weak support. The next noteworthy level is 1.0965, which is the confluence of the BB 1d-Lower, the Pivot Point one-week Support 1, and the PP 1d-S3.

Looking up, fierce resistance awaits at 1.1074. The dense cluster includes the BB 1h-Upper, the PP 1d-R1, the Fibonacci 38.2% one-month, the previous daily high, and the Fibonacci 23.6% one-week. 

Also here, if EUR/USD breaks free to the upside, it has room to run. However, the resistance line is stronger than support. 

An upside move could target 1.1143, which is the meeting point of the Fibonacci 61.8% one-month and the PP 1w-R1. 

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.

Learn more about Technical Confluence

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.