EUR/USD is trading lower in the wake of Tuesday but its losses may reach their limits as a significant support line awaits.
The Technical Confluences Indicator shows a considerable convergence of lines awaits at 1.1437 where we see the previous 4h-low, the Fibonacci 23.6% one-month, the Simple Moving Average 10-4h, the SMA 50-4h, the Fibonacci 61.8% one-day, and the Bollinger Band 1h-Lower.
Another cushion is close by 1.1413 is the confluence of the Fibonacci 38.2% one-week, the SMA 5-one-day, the SMA 100-1h, the SMA 100-4h, and the BB 4h-Middle.
Looking up, we see a cap at 1.1485 which is a juncture including the Fibonacci 61.8% one-week, the BB 4h-Upper, and yesterday's peak.
The next hurdle is at 1.1544 where the Pivot Point one-month Resistance 1 and the PP 1d-R2 converge.
All in all, the path of least resistance is to the upside despite the slide.
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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