EUR/USD has been on the back foot after Jerome Powell, Chairman of the Federal Reserve, rejected pushing interest rates into negative territory. Can the currency pair recover? Not so fast.
The Technical Confluences Indicator is showing that the path of least resistance is to the upside. Euro/dollar is mired in a swamp of lines around 1.0811, which includes the previous daily low, the Bollinger Band 15min-Middle, the Simple Moving Average 50-15m, and the SMA 10-1h.
The strongest resistance cluster awaits at 1.0850, which consists of the SMA 200-1h, the Fibonacci 38.2% one-month, the Fibonacci 38.2% one-week, the SMA 10-4h, the SMA 50-4h, and the Fibonacci 38.2% one-day.
Some support awaits at 1.077, which is the convergence of the Pivot Point one-month Support 1 and the one-week low.
Further down, even weaker support is at 1.0732, where the previous monthly low hits the price.
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
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