Reserve Bank of Australian Governor Phillip Lowe said that he is considering a rate cut in the upcoming June meeting. His words sent the Aussie significantly lower. What are the levels to watch in AUD/USD?
The Technical Confluences Indicator shows that AUD/USD has significant support at 0.6864 which is the convergence of the previous weekly low, the Pivot Point one-month Support 2, the Bollinger Band 4h-Lower, and more lines.
If the Aussie dollar loses this substantial support line, it enjoys only single support lines such as the Pivot Point one-day S2 at 0.6940, the PP 1-week S1 at 0.6817, and the PP 1d-S3 at 0.6807.
Resistance is much more significant. AUD/USD has an initial hurdle at 0.6897 which is the confluence of the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the Simple Moving Average 5-15m.
The next cap is more considerable. At 0.6910, the A$ faces a dense cluster of lines: the SMA 5-1d, the SMA 100-1h, the Fibonacci 61.8% one-day, the SMA 50-15m, the SMA10-1h, the SMA 10-1h, and more.
Further above, if it stages a massive recovery, AUD/USD may target 0.6957where the PP 1m-S1, the PP 1w-R1, the SMA 10-1d, and the Fibonacci 61.8% one-week converge.
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.
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