AUD/USD enjoys strong support and may recover – Confluence Detector
|AUD/USD has been unmoved by the Reserve Bank of Australia's meeting minutes as the focus remains on the US-Sino trade wars. The technical chart looks favorable for the Aussie.
The Technical Confluences Indicator is showing that AUD/USD is enjoying some support at 0.6788, which is the convergence of the previous 4h-high, the Bollinger Band 1h-Upper and the Fibonacci 61.8% one-week.
Stronger support awaits at 0.6770, where we see a dense cluster including the Simple Moving Average 5-4h, the SMA 50-15m, the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-week and more.
Another considerable cushion awaits at 0.6756, where we see the confluence of the Pivot Point one-day Support 1, the Fibonacci 23.6% one-week and the BB 1h-Lower.
Looking up, the first noteworthy resistance awaits at 0.6820, which is the meeting point of the previous weekly high and the PP 1w-R1.
Higher, the currency pair may target 0.6869, where the Fibonacci 161.8% one-week meets the price.
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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