EUR/USD looks vulnerable after the recent consolidation

The  EUR/USD  consolidated its previous losses and stabilized below 1.1600. What’s next? Rising may be harder than falling.

The  Technical Confluences Indicator  shows that that the pair faces a dense cluster of resistance lines at  1.1580  which is the confluence of the Simple Moving Average 100-15m, the Fibonacci 61.8% one-day, the Simple Moving Average 50-15m, the SMA 200-15m, the SMA 5-4h, the SMA 50-1h, and the SMA 10-4h.

Should the pair break above this level, there are quite a few lines of resistance with the  1.1645  level standing out as the convergence of significant levels: the Fibonacci 161.8% one-day, the Fibonacci 23.6% one-month, and also the Pivot Point one-day Resistance 2.

Even higher, a potent cap awaits at  1.1670  which is the confluence of the Pivot Point one-day Resistance 3, the SMA 50-4h, the Fibonacci 38.2% one-week, and the SMA 200-1h.

On the downside, the pair has support around  1.1538  which is the meeting point of the one-day high, the Pivot Point one-day Support 1, and the one-week low. Further down,  1.1510  is the one-month low, the Bolinger Band one-day Lower, the Pivot Point one-day Support 2.

The next significant level on the downside is only at  1.1442  which is the Pivot Point one-month Support 1.

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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