The EUR/USD is extending its recovery after hitting new lows for the year. The pair nears $1.2000 but faces a dense cluster of resistance.
The Technical Confluences Indicator shows that the pair faces congestion of resistance lines around $1.1983. This includes the one-week high, the Bolinger-Band one-hour Upper (Stdv. 2.2), the BB 15m-Upper, and the Pivot Point one-day Resistance 1.
Should the pair have enough momentum to overcome this level, the next confluence of potent levels is only at 1.2076. This is the meeting point of the Pivot Point one-week Resistance 2, and the Fibonacci 161.8% one-week.
On the downside, support is also very near. The $1.1952 level is the confluence of the Simple Moving Average 100-15m, the Pivot Point one-month Support 1, the Fibonacci 23.6% one-day, and the Fibonacci 38.2% one day.
Lower, the next cluster is at $1.1925, which sees the confluence of the Fibonacci 61.8% one-day, the Simple Moving Average 50-1h, and the SMA200-15m.
Here is how it looks on the tool:
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.