EUR/USD set new two-month lows but then staged a remarkable recovery. What’s next? In the near term, it is locked in a narrow range, but taking a broader view, the upside is more appealing.
The Technical Confluences Indicator shows that euro/dollar faces resistance at 1.1360 where we see the convergence of the Fibonacci 23.6% one-week, the Bollinger Band 1h-Upper, the Fibonacci 23.6% one-month, the BB 4h-Upper, and the Pivot Point one-day Resistance 1.
Higher above, the pair faces weaker resistance on the way up with 1.1412 where we see the confluence of the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week, and the Simple Moving Average 200-4h.
On the downside, 1.1324 provides support which is similar to resistance at 1.1360. At 1.1324 we find the BB 1h-Middle, last week’s low, the SMA 100-1h, the Fibonacci 23.6% one-day, the BB 4h-Middle, and the SMA 5-4h.
Further down, we see the most significant support line at 1.1295: we note last month’s low, the Fibonacci 61.8% one-day, and the PP one-month Support 1, all substantial lines.
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.Get the 5 most predictable currency pairs