Search ForexCrunch

EUR/USD  was hit hard by the dovish shift in the ECB’s decision to push back on rate hikes and provide new funding for banks. President Mario Draghi’s dovish press conference did not help and the pair the lowest since June 2017. What’s next?

The  Technical Confluences Indicator  shows that EUR/USD faces initial resistance at  1.1215  which was the 2018  low, the Fibonacci 23.6% one-day, and the Bollinger Band 1h-Middle.

The next cap is quite close. At  1.1231  a dense cluster of lines awaits the pair: the Pivot Point one-month Support 3, the previous month’s low, the  Fibonacci 38.2% one-day, and the Simple Moving Average 100-15m.

The pair is struggling at the round number of  1.1200  which is the convergence of the SMA 5-15m, the previous 4h-high, the BB 15min-Middle, and the BB 4h-Lower.

Support is at  1.1176  which is the fresh 2019 low. If euro/dollar extends its falls, the downside target is  1.1134  where we see the confluence of the PP one-day Support 1 and the Bollinger Band 1h-Lower.

Here is how it looks on the tool:

EURUSD technical analysis confluence March 7 2019

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.