The EUR/USD traded lower before it got somewhat carried away by the Pound and its Brexit optimism. Will it go up or down? In any case, the battle lines are clear to see.
The Technical Confluences Indicator shows that the 1.1623 area is a pivotal point, a dense cluster of technical levels. These include the Fibonacci 23.6% one-day, the Fibonacci 23.6% one-week, the Simple Moving Average 5-one-day, and the Bolinger Band one-hour Middle.
Looking up, there are quite a few minor levels, but only at 1.1738, we see a critical resistance level. This is the convergence of last month’s high, last week’s high, and also the SMA 100-one-day.
On the downside, we also see quite a few technical indicators, but the crucial confluence is at 1.1550 which includes the Pivot Point one-week Support 1, the Bolinger Band one-day Middle, and the one-day low.
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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