EUR/USD has kicked off the week on the back foot amid weak German data. However, it has significant support and may advance.
The Technical Confluences Indicator is showing that EUR/USD has major support at 1.0977, which is a dense cluster of lines including the Fibonacci 23.6% one-week, the Simple Moving Average 50-one-hour, the Fibonacci 61.8% one-day, and the Bollinger Band 15min-Lower among others.
Further down, additional support awaits at 1.0954, which is the convergence of the SMA 100-1h, the SMA 5-1d, and the Fibonacci 38.2% one-week.
Resistance awaits at 1.1028, which is the confluence of the Fibonacci 61.8% one-month and the Pivot Point one-week Resistance 1.
The next noteworthy line on the upside is 1.1115, which is where the previous monthly high meets the Bollinger Band one-day Upper.
All in all, the path of least resistance is 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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