AUD/USD now faces bigger hurdles and go under – Confluence Detector
The AUD/USD enjoyed a better mood and upbeat Australian data to recover, but may now face substantial technical barriers.
The Technical Confluences Indicator shows that the pair has a battleground around 0.7408 which is the convergence of the Fibonacci 23.6% one-month and the Simple Moving Average 5-15m.
Not too far above, 0.7426 is the confluence of the potent Simple Moving Average 100-4h, the 4h high, the Bolinger Band 1h-Upper, and the Pivot Point one-day Resistacne one.
On the downside, significant support awaits at 0.7393 with the Simple Moving Average 100-15m, the SMA 5-4h, and the Bolinger Band 1h-Middle Stdv. 2.2. More substantial support awaits at 0.7385 which is the congestion of the SMA 200-1h, the SMA 50-4h, the Fibonacci 23.6% one-day, and the SMA 10-one-day.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
