EUR/USD climbed to 1.1500 as the Federal Reserve preached patience and opened the door to making changes to the balance sheet reduction scheme. Where next?
The Technical Confluences Indicator shows that euro/dollar faces initial, weak resistance at 1.1513 which is the convergence of the previous 4h high and the Bollinger Band 15-minutes Upper.
The next significant target is the 1.1540 region which is the meeting point of the BB 1h-Upper, the Pivot Point one-month Resistance 1, and the BB one-day Upper.
Immediate support awaits at 1.1487 which is the confluence of last month’s high, the Fibonacci 23.6% one-day, and also the Simple Moving Average 50-15m.
The most substantial support area to consider is at 1.1468 where we see the Bollinger Band 1h-Middle, the Fibonacci 38.2% one-day and the Simple Moving Average 5-4h converge.
All in all, the path of least resistance is clearly to the upside.
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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