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EUR/USD faces fierce resistance and has room to fall ahead of the ECB – Confluence Detector

EUR/USD  is trading around 1.10 as tension mounts ahead of the all-important decision of the European Central Bank. Will Draghi drag the euro down or disappoint high expectations and send it higher? The world’s most popular currency pair is poorly-positioned ahead of the event.

The  Technical Confluences Indicator  is showing that EUR/USD is trading below a dense cluster of technical levels between 1.1019 to 1.1030. The area includes the Simple Moving Average 10-4h, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-month, the Bollinger Band 1h-Upper, Fibonacci 38.2% one-week, the BB 15min-Upper, and the SMA 100-15m, and more.

Further up, the next hurdle awaits at 1.1070, which is the convergence of the BB 4h-Upper and the Fibonacci 38.2% one-month.  

Next, 1.1105 is the next cap, where the Fibonacci 161.8% one-day and the Pivot Point one-week Resistance 1 meet the price.

Looking down, weak support awaits at 1.0990, which is the confluence of the previous daily low and the Fibonacci 61.8% one-week.  

Lower, some support awaits at 1.0962, which is the previous monthly low.  

Even lower, the downside target is 1.0885, which is where the Pivot Point one-month Support 1 hits the price.

Here is how it looks on the tool:

EUR USD September 12  2019 technical confluence

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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