EUR/USD upside has its limits

The EUR/USD advanced on the greenback’s weakness following the relative dovishness of Fed Chair Powell’s speech. Can it continue higher?

The Technical Confluences Indicator shows that the pair has an area of struggle at 1.1673 which is the convergence of the Simple Moving Average 5-4h, the one-hour low, the four-hour low, the Fibonacci 23.6% one-day, and the SMA 5-15m.

A run higher may halt at 1.1709 which is the meeting point of the Fibonacci 38.2% one-month and the Pivot Point one-week Resistance 1.

The most robust cap is at 1.1746 which is the confluence of the Fibonacci 23.6% one-month, the Bolinger Band one-day Upper, and last month’s high.

Immediate support is quite close: 1.1661 which is the convergence of the Fibonacci 38.2% one-day, the Fibonacci 61.8% one-month, and the SMA 100-15m.

However, the next significant cluster of technical lines is only at 1.1588 which is the meeting point of the PP one-month Support 1, the Fibonacci 23.6% one-week, and the SMA 200-4h.

All in all, resistance lines are stronger than support lines.

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