EUR/USD bulls face two strong hurdles – Confluence Detector

EUR/USD has kicked off the new week by edging higher. Can it extend its gains? Technical levels are pointing to limits facing the world's most popular currency pair.

The Technical Confluences Indicator is showing hat resistance is at 1.0851, which is the convergence of the Fibonacci 38.2% one-month, the Simple Moving Average 5-1h, the Fibonacci 38.2% one-week, the previous 4h-high, the SMA 100-15m, the SMA 50-15m, the Bollinger Band 1h-Middle and more. 

Further up, EUR/USD faces another cap at 1.0879, which is the meeting point of the SMA 50-4h, the previous daily high, and the previous yearly high.

Support awaits at 1.0818, which is the confluence of the previous daily low and the Fibonacci 23.6% one-week. 

Further down, another cushion is at 1.0778, which is where the Pivot Point one-month Support 1, the Fibonacci 161.8% one-day, and the PP one-day 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.

Learn more about Technical Confluence