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The  EUR/USD  has erased its recovery and settled at the somewhat lower ground amid growing trade tensions. Where is it heading next?

The  Technical Confluences Indicator  shows that the pair is battling the  1.1722 – 1.1734  area where it is hugged by a congestion of many levels. These include the Simple Moving Average 5-one-day, the Fibonacci 38.2% one-day, the Fibonacci 61.8%, the Bolinger Band 15m-Lower, the Fibonacci 23.6% one-week, the SMA 515m, and the SMA 5-4h.

Should the pair give in to pressure and fall, the next substantial confluence of support is at  1.1704  which is the confluence of the Fibonacci 38.2% one-week, the Pivot Point one-day Support 1, and the Bolinger Band 1h-Lower.

Below,  1.1661  may provide support as it is the meeting point of the Fibonacci 61.8% one-week and the Pivot Point one-day Support 2. Yet a firm cushion is only at  1.1594  which is where the Fibonacci 23.6% one-month and the one-week low converge.

On the topside,  1.1807  is the first target with the convergence of the Fibonacci 161.8% one-day, the Pivot Point one-week Resistance 1 and the Pivot Point one-day Resistance 2.

Even higher,  1.1860  remains a target as the meeting point between the Pivot Point one-month Resistance 1 and the one-month high.

Here is how it looks on the tool:

EUR USD technical confluence July 11 2018

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