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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:

EUR USD technical confluence February 13 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.