EUR/USD Breaks Higher, Next Significant Resistance Only At $1.2425 — Confluence Detector

The Technical Confluences Indicator shows that the recent surge in the EUR/USD sent it piercing through a dense area of resistance levels. The $1.2325 to $1.2335 area it had struggled with is the confluence of the SM100-15m, the SMA10- one day, the 1h low, the SMA10-1h, the SMA200-4h, the Bolinger Band 1h-Middle (Stdv 2.2), the BB 1d-Middle, the SMA-t-1hv, the BB 15m-Middle, the SMA10 15m, the BB 1h Upper and the one-day high. 

Those comments from Ewald Nowotny sent it to around $1.2370, but there is no significant resistance until approximately $1.2424, which is where we see a convergence of the Pivot Point 1d R3, the BB 1d-Upper and the Fibonacci 161.8 percent one week. 

If this line were to break, there is little resistance until around $1.2480, where we see the Pivot Point 1 week R3, the one-month high, and the PP one-month R1.

Lower support is around $1.2285, where the PP one-day S1, Fibo 161.8 percent one month, and the SMA100-1h.

All in all, this is a significant move that leads the door to further as there are few confluences above. 

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. This means 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