EUR/USD has been succumbing to King Dollar, as the market mood worsened. Can it recover? The technical picture is pointing down.
The Technical Confluences Indicator is showing that the world’s most popular currency pair faces fierce resistance at 1.0885, which is a dense cluster of lines including the Fibonacci 23.6% one-day, the Bollinger Band 15min-Upper, the Fibonacci 38.2% one-week, and more.
Another cap awaits at 1.0913, which is the convergence of the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the Simple Moving Average 100-15m.
The next strong cap is at 1.0970, which is the confluence of the Fibonacci 38.2% one-month and the 50-day Simple Moving Average.
Significant support awaits at 1.0840, which is the meeting point of the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-week, and the previous daily low.
Below that line, only weak cushions await the pair. The downside target is 1.0762, which is where the Pivot Point one-day Support 2 and the previous weekly low 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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