The EUR/USD tumbled down on Draghi’s dovish stance on interest rates, and it now awaits US GDP. The pair’s positioning is not promising.
The Technical Confluences Indicator shows that the pair faces significant resistance at 1.1685 which is a dense cluster of technical levels: the Fibonacci 38.2% one-day, Fibonacci 38.2% one-week, the Simple Moving Average 10-one-day, the SMA 50-one-day, the Bolinger Band one-day-Middle, the SMA 200-15m, the SMA 50-one-hour, and the Bolinger Band 4h among others.
If the pair breaks higher, the next notable level to watch is 1.1746 which is the convergence of the one-day high, last week’s high, and the Bolinger Band 4h-Upper.
1.1643 is a battle line as it is the confluence of the four-hour low, the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week, and the Bolinger Band 15m-Lower.
Soft support awaits at 1.1577 which is the meeting point of the Pivot Point one-day Support 2 and last week’s low.
More substantial support is only at 1.1510 which is the convergence of the Pivot Point one-week Support 2, the PP one-month Support 1, and the 52-week low.
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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