EUR/USD has a lot of support on the way down and one critical resistance level — Confluence Detector
|The Technical Confluences Indicator shows a congestion of technical resistance lines at $1.2400, giving us a better explanation of why the pair could not continue advancing at this point. The line is the convergence of the Bolinger Band 15m-Upper (Stdv. 2.2), the one-week high, the Pivot Point one-week R1, the Fibonacci 23.6% one-month, the Bolinger Band 1h-Upper, the SMA5-15m, and the BB 1h-Upper.
If the pair breaks higher, it faces few, but potent resistance lines at $1.2480. This is the confluence of the Pivot Point one-month R1, the one-month high, and the Pivot Point one-week R2.
Upon a downfall, support is very near: $1.2365. This is a busy congestion of the SMA100-1h, the Fibonacci 61.8% 1d, the Fibo 23.6% 1w, the BB 15m-Lower, the BB 1h-Lower, the BB 1h-Middle, the SMA10-4h, the SMA200-15m, and the SMA50-1h.
In general, the pair has a lot of support on the way down and one strong level of resistance at $1.2400 on the way up. This is a critical level.
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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