EUR/USD has been grinding its way lower, hitting fresh two-year lows with every pip lost. The slow move may turn into an avalanche is critical support is lost.
The Technical Confluences Indicator is showing that EUR/USD has some support awaits at 1.0908, which is the convergence of the Bollinger-Band 1h-Lower, the BB 4h-Lower, and the previous 4h-low.
It is followed by 1.0886 – which is critical support. It is the meeting point of the Pivot Point one-month Support 1 and the PP 1w-S3.
Beyond this level, EUR/USD lacks noteworthy support until 1.0783, which is where the PP 1m-S2 meets the price.
Resistance awaits at 1.0942, where we see the confluence of the PP 12-S2, the BB 1d-Lower, and the Simple Moving Average 10-4h.
Further up, the next significant resistance area is between 1.0976 and 1.0988, where the previous weekly low, the PP 1d-R2, the PP 1w-S1, and the SMA 5-1d meet.
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
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