AUD/USD has only one more support line left before the abyss – Confluence Detector

AUD/USD crashed on the very disappointing inflation report that triggered speculation about a rate cut as soon as May 7th. The pair is getting closer to 0.70 and there is only one support cluster left to stop it.

The Technical Confluences Indicator shows that the Aussie has some support at around 0.7013 where we see the confluence of the Pivot Point one-month Support 1, the previous yearly low, the Bollinger Band 15min-Lower, and the previous monthly low.

Below this area, AUD/USD has no support at least until 0.6954.

Looking up, resistance awaits at 0.7065 where we see the convergence of the Fibonacci 61.8% one-month, the Simple Moving Average 10-1h, the BB 4h-Lower, and the Pivot Point one-day S1. 

The next hurdle is quite close. At 0.7090 we see the meeting point of the SMA 5-4h, the SMA 100-15m, and the PP 1w-S2.

Further up, the A$ is capped at 0.7112 where we the confluence of the SMA 200-15m, the SMA 50-1h.

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.

Learn more about Technical Confluence