EUR/USD lost some ground as the US Dollar extended its climb, on the echoes of the upbeat Non-Farm Payrolls report. Can EUR/USD recover? Not so fast.
The Technical Confluences Indicator shows that the pair faces resistance at 1.1442 which is a dense cluster including the Simple Moving Average 5-4h, the Bollinger Band 1h-Middle, the Fibonacci 61.8% one-week, the Fibonacci 38.2% one-day, the SMA 100-1d, and the Bollinger Band 15-minutes Upper.
If euro/dollar manages to break higher, it faces quite a few confluences of resistance with another notable one at 1.1472, where we see the convergence of the Fibonacci 61.8% one-month, the Pivot Point one-day Resistance 2, and the Fibonacci 38.2% one-week.
Looking down, support awaits at 1.1400. Apart from being a round number, the area consists of the following technical lines: the Pivot Point one-month Support 1, the SMA 50-1d and last week’s low.
The next noteworthy support line is only at 1.1317 which is the meeting point of the Fibonacci 161.8% one-week and the BB 1d-Lower.
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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