The EUR/USD has settled below 1.1700, getting comfortable in a higher range but not going anywhere fast. There is a reason why it is stuck there, yet a break can send it shooting higher.
The Technical Confluences Indicator shows that the EUR/USD is stuck around the 1.1680 which is the dense cluster of levels including the Simple Moving Average 100-one-hour, the Fibonacci 61.8% one-day, the Fibonacci 23.6% one-week, the SMA 50-15m, the SMA 10-one-hour, the Bolinger Band one-hour Middle, the SMA 5-one-day, and the SMA 100-one-day.
Looking up, weak resistance awaits at 1.1728 where we see the Pivot Point one-week Resistance 1, the Bolinger Band one- day Upper, and the one-day high.
The next upside target is 1.1795 where we see the Pivot Point one-month Resistance 1.
Looking down, there is some support at 1.1649 which is the convergence of the SMA 50-4h, the Fibonacci 38.2% one-week, and the one-day low.
Lower, additional support is at 1.1606 which is the meeting point of the Fibonacci 61.8% one-week, the SMA 50-one-day, and the Fibonacci 161.8% one-day.
All in all, the path of least resistance is up.
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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