Market Overview

EUR/USD: Path Of Least Resistance Is To The Downside - Confluence Indicator - Levels To Watch

Share:

The Technical Confluences Indicator shows that the break below the cluster of indicators around $1.2319 leaves few technical barriers on the downside. This line was the confluence of the BB 1h Middle Stdv 2,2, the SMA10-15m, the BB 1h Lower Stdv 2.2 and Fibo 38.2 percent 1w. The level is wrapped with other confluences making it even stronger and it now switches into strong resistance.

While support to the downside is weak, here are a few notable levels that serve as the next targets.

  • The $1.2281 level is the confluence of the Fibonacci 23.6 percent level on the monthly chart and a daily pivot point
  • The $1.2261 level is a cluster of day high and a one week low.
  • Below this line, there is hardly any line. 

Here is how it looks with dense and stronger lines on the upside and fewer and weaker lines on the downside: 

eurusd_confluence_march_20_2108-636571455428543333.png

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.

Learn more about Technical Confluences

Posted-In: FXStreetNews Eurozone Forex Markets

 

Related Articles

View Comments and Join the Discussion!