The EUR/USD is stable in the wake of a new week, but its prospects have not improved. The Technical Confluences Indicator shows that stronger clusters of resistance remain to the upside while fewer confluence zones await on the downside.
The pair is struggling around 1.2280, where we see congestion of the Simple Moving Average 5-15m, the SMA50-15m, the Fibonacci 61.8% one-month, the Bolinger Band 15m-Upper (Stdv. 2.2), the BB 1h-Middle, the SMA-5-1hv, the Fibo 23.6%, and the SMA10-1h.
If the pair indeed drops, support is found around 1.2215, the meeting point of the Pivot Point one-week S1 and the one-month low. Even lower, at 1.2155, we find the Pivot Point one-month S1 and the Pivot Point one-week S2.
If the pair moves back up, we find congestion of resistance lines around $1.2330: the SMA50-1h, the SMA200-15m, the SMA100-4h, the Fibo 38.2% one-week, and the Fibo 61.8% one-day.
Further above, a dense convergence is quite close, at around $1.2355, which is the meeting point of the SMA100-1h, the SMA50-4h, the SMA200-1h, the SMA5-1d, and the Fibo 61.8% one-week.
All in all, the lines to the upside are of higher importance and very close to each other, while the downside has more lightweight.
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. This means 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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