EUR/USD looks vulnerable ahead of the ECB – Confluence Detector
|EUR/USD has been on the back foot amid disappointing German and French figures. The world's most popular currency pair now faces the most significant test – the European Central Bank's rate decision. How is euro/dollar positioned?
The Technical Confluences Indicator shows that EUR/USD faces robust resistance at 1.1140 where we see a dense cluster including the Fibonacci 23.6% one-day, the Simple Moving Average 5-15m, the SMA 10-15m, the Bollinger Band 15min-Middle, the Fibonacci 38.2% one-day, and the BB 1h-Upper.
On the downside, some support awaits at 1.1128 where the Pivot Point one-day Support 1 and the previous daily low converge.
Further down, a weaker cushion awaits 1.1098 where the PP 1w-S3 and the PP 1d-S3 meet. It is followed by 1.1065 where the PP 1m-S2 meets the price.
Resistance above 1.1140 is substantial. The first noteworthy confluence area is 1.1186 where we see the PP 1d-R3, the PP 1w-S1, and the SMA 100-1h.
Further above, fierce resistance awaits at 1.1221 where the PP 1m-S1 and the Fibonacci 23.6% one-week converge.
All in all, support is weaker than resistance.
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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