EUR/USD faces dual resistance lines, downside is easier – Confluence Detector
EUR/USD is trading just above 1.10, looking for a new direction amid contradicting trade headlines. Which direction will it choose? The downside seems more appealing.
The Technical Confluences Indicator is showing that fierce resistance awaits at 1.1046, which is a dense cluster including the Simple Moving Average one-day, the Bollinger Band 4h-Middle, the SMA 50-1d, the Fibonacci 38.2% one-week, the SMA 200-1h, the SMA 5-1d, the SMA 100-1h, and more.
Above, another substantial cap is seen at 1.1068, which is the convergence of the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week, the BB one-day Middle, and the Pivot Point one-week Resistance 1.
Looking down, support awaits at 1.0994, which is the confluence of the BB 4h-Lower, the PP 1w-S1, and the Fibonacci 61.8% one-month.
Further down, another cushion is at 1.0966, which is the meeting point of the PP 1m-S1 and the PP 1w-S2.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
