The EUR/USD is on the rising, staging a significant recovery and battling 1.1600. In the past, such movements have been dead-cat bounces. If this time is different, the pair may have more room to run.
The Technical Confluences Indicator shows that the most significant convergence of technical lines is around 1.1650, which is the meeting point of the Simple Moving Average 5–one day, the one-month low, the one-week low, and the SMA 100-1h.
A break of that line opens the door to 1.1720 which is the confluence of the Fibonacci 38.2% one-week, the SMA 10-1 day, and the Fibonacci 161.8% one-day.
Some support awaits at 1.1590 where the Fibonacci 61.8% one-day, the SMA 5-15m, and the Pivot Point one-week Support 1 meet.
The next cushion is around 1.1542 which is the Fibonacci 23.6% one-day, the SMA 10-1h, the SMA 5-4h, and the Bolinger Band one-hour-Middle among others.
Here is how it looks on the tool:
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.