EUR/USD has been consolidating around 1.1100 and looking for a new direction as it waits, data, the European Central Bank’s meeting minutes, and the all-important speech by Fed Chair Jerome Powell. Where will the currency go to? It may find it easier to fall rather rise.
The Technical Confluences Indicator is showing that EUR/USD has support at 1.1065 which is the convergence of the previous monthly low and the Pivot Point one-day Support 2.
Below this line, noteworthy support awaits only at 1.1973, where we see the Pivot Point one-week Support 2 and the PP one-month S1.
Looking up, there is limited room to rise. Initial resistance is at 1.1094, where a dense cluster of lines awaits EUR/USD. These include the Bollinger Band 15min-Middle, the Simple Moving Average 50-15m, the Fibonacci 38.2% one-day, the SMA 200-15m, the SMA 200-15m, the SMA 100-1h, the SMA 5-4h, the BB 15min-Upper, and the BB 1h-Middle.
Further up, robust resistance is seen at 1.1134, where we see the confluence of the Fibonacci 38.2% one-week, the PP 1d-R3, and the SMA 200-1h.
Another cap awaits at 1.1174, where the SMA 200-4h 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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