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EUR/USD  kicked off the week with a drop below 1.1300, eventually hitting the lowest levels in two months. Can it recover from here or is the triple bottom in danger? The downside looks more appealing.

The  Technical Confluences Indicator  shows that euro/dollar faces a significant cap around  1.1292  where we see a dense cluster including the Bollinger Band one-day Lower, last month’s low, the Simple Moving Average 100-15m, the Fibonacci 38.2% one-day, and the Pivot Point on one-month Support 1.

Significant support awaits only at around  1.1215  which was the 2018 low and also converges with the Pivot Point one-week Support 2 and the PP one-day S2.

If EUR/USD extends its fall, the low target is  1.1152  where we see the meeting point of the PP one-month S3 and the PP one-month S2.

On the topside, immediate resistance is at  1.1321  which is the confluence of the PP one-day R1, last week’s low, and the BB 4h-Middle.

Here is how it looks on the tool:

EUR USD technical confluence February 12 2019

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.