EUR/USD dead cat bounce déjà vu— Confluence Detector

The EUR/USD is making an attempt to stabilize after Italian uncertainty sent it lower. However, fierce resistance awaits the pair and it the recovery may turn into yet another dead cat bounce.  

The Technical Confluences Indicator shows a convergence of resistance lines at 1.1647: the Simple Moving Average 100-15m, the one-month low, the one-week low, and the Fibonacci 23.6% one-day. 

If the pair breaks higher, 1.1695 is the next line to watch: it is the confluence of the SMA 100-1h, the SMA 5-1d, the Fibonacci 23.6% one-week, and the Pivot Point one-day Resistance 1. 

On the downside, support is close by. The 1.1611 is the congestion of the one-day high, the Bolinger Band 1h-Lower (Stdv. 2.2), and the Bolinger Band one-day Lower. Further support is at 1.1593 which is the meeting point of the Pivot Point one-month Support 3, the PP one-week Support 1, and the PP one-day Support 1.

All in all, the pair is limited in a tight range. A breakout to the downside could unleash bigger falls.

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