EUR/USD managed to recover and recapture 1.1300 as the market mood temporarily improved. What’s next? The next moves to the upside may be harder.
The Technical Confluences Indicator shows that EUR/USD faces a dense cluster of resistance lines at 1.1365. This includes the Pivot Point one-day Resistance 1, the Fibonacci 23.6% one-week, the Bollinger Band one-hour Upper, the Simple Moving Average 200-1h, and the SMA 50-4h.
The next hurdle is more potent. At 1.1385 we see the convergence of the BB one-day Middle, the Fibonacci 38.2% one-week, and the Fibonacci 23.6% one-month.
Should the pair break higher, the next target is 1.1428 where we see the Fibonacci 38.2% one-month, and the Fibonacci 61.8% one-week converge.
Looking down, 1.1315 provides support. It is the confluence of the BB 1h-Middle, the SMA 5-4h, the Fibonacci 38.2% one-day, and the BB 15m-Lower.
Lower, 1.1275 is a weaker support cluster that includes the BB 1h-Lower, the PP one-day S1, and the PP one-month S1.
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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