The EUR/USD bounced back after hitting a new low on Monday but is now struggling again. Nevertheless, it has a strong support line that may keep it from falling. But if this cushion, collapsed, it could turn into a free-fall.
The Technical Confluences Indicator shows a dense cluster of support around 1.1750, which is the convergence of the one-month low, the one-week low, the Bolinger Band one-hour Lower, the Fibonacci 61.8% one-day and the Pivot Point one-day Support 1, all potent lines.
A collapse of this confluence would open the door to support only at 1.1685, which is the meeting point of the Pivot Point one-week Support 1 and the Bolinger Band one-day-Lower. This cluster is not as potent as the 1.1750 line mentioned earlier and would consist of a new 2018 low in any case.
To the upside, the pair has a lot of work to move up. There are quite a few resistance lines and perhaps the most significant cluster is around 1.1845, which is the congestion of the Fibonacci 38.2 one-week, the Pivot Point one-day Resistance 2, and the Simple Moving Average 10-one-day.
All in all, support at 1.1750 stands out but moving up is not that easy either.
Here is how it looks on the tool:
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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