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The  EUR/USD  is on the back foot after the Federal Reserve remained optimistic about the economy. Earlier, the greenback recovered from the initial drop resulting from the Mid-Terms.

The  Technical Confluences Indicator  shows that the pair has some weak support  1.1341  where we see the confluence of the Fibonacci 23.6% one-week, the Bollinger Band 15m-Lower, the Simple Moving Average 5-15m, and the Bolinger Band 1h-Lower.

The next support line is a crucial one:  1.1300  is not only a round number but also the convergence of the Pivot Point one-month Support 1, last week’s low, last month’s low, and the Pivot Point one-day Support 2.

If the pair loses 1.1300, the next level to watch is  1.1235  which is the meeting point of two Pivot Points: the one-week S3, and the one-week Support 2.

A recovery will send the EUR/USD to resistance at  1.1388  which is a dense cluster including the SMA 10-one-day, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-month, the SMA 5-4h, the Fibonacci 23.6% one-day, the SMA 200-1h, and the SMA 50-4h.

1.1424  is where the PP 1-day, R1, the BB 4h-Middle, the Fibonacci 38.2% one-month, the SMA 50-1h, and the SMA 200-15m.

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.

Learn more about Technical Confluence