EUR/USD has been on the back foot as the dollar managed to recover. Coronavirus-related developments remain left, right, and center. How is the world’s most popular currency pair positioned?
The Technical Confluences Indicator is showing EUR/USD has substantial support at 1.0863, which is the convergence of the Simple Moving Average 5-15m, the SMA 10-15m, the Fibonacci 23.6% one-week, and the SMA 5-one-day.
Further down, another significant cushion awaits the pair at 1.0841, which is the confluence of the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-month, and the SMA 50-1h.
Looking up, some resistance is at 1.0903, which is the meeting point of the Bollinger Band 4h-Upper, the Fibonacci 38.2% one-week, and the BB 1h-Upper.
Next, 1.0954 is the upside target. It is a juncture including the BB one-day Middle, the Pivot Point one-day Resistance 1, and the 10-day SMA.
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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