EUR/USD faces a wall of resistance after losing ground – Confluence Detector
|EUR/USD has gradually dropped as optimism regarding the US-Sino trade wars replaced concerns. Where next?
The Technical Confluences Indicator is showing that EUR/USD faces resistance around 1.1117, where a dense cluster of lines awaits. This includes the Simple Moving Average 100-15m, the Fibonacci 38.2% one-week, the Bollinger Band 15min-Upper, the BB 1h-Middle, the SMA 10-1d, the SMA 200-15m, the SMA 50-1h, and the Fibonacci 23.6% one-day.
It is closely followed by 1.1140, where the convergence of the BB 1d-Middle, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-week, and the Fibonacci 23.6% one-month.
Looking down, weak support awaits at 1.1094, where the confluence of the Fibonacci 61.8% one-week, the Bollinger Band 1h-Lower, and the previous daily low awaits the pair.
Lower, the next cushion is at 1.1048, where the BB 4h-Lower and the previous weekly low 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.
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