EUR/USD falling towards critical support at 1.1300, targets 1.1235 next – Confluence Detector

The EUR/USD is on the back foot after the Federal Reserve remained optimistic about the economy. Earlier, the greenback recovered from the initial drop resulting from the Mid-Terms.

The Technical Confluences Indicator shows that the pair has some weak support 1.1341 where we see the confluence of the Fibonacci 23.6% one-week, the Bollinger Band 15m-Lower, the Simple Moving Average 5-15m, and the Bolinger Band 1h-Lower. 

The next support line is a crucial one: 1.1300 is not only a round number but also the convergence of the Pivot Point one-month Support 1, last week's low, last month's low, and the Pivot Point one-day Support 2. 

If the pair loses 1.1300, the next level to watch is 1.1235 which is the meeting point of two Pivot Points: the one-week S3, and the one-week Support 2. 

A recovery will send the EUR/USD to resistance at 1.1388 which is a dense cluster including the SMA 10-one-day, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-month, the SMA 5-4h, the Fibonacci 23.6% one-day, the SMA 200-1h, and the SMA 50-4h. 

1.1424 is where the PP 1-day, R1, the BB 4h-Middle, the Fibonacci 38.2% one-month, the SMA 50-1h, and the SMA 200-15m. 

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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