EUR/USD has its technical battle lines clearly drawn – Confluence Detector

The EUR/USD is looking for a new direction as traders shift their attention back to trade after France won the World Cup. What's next? 

The Technical Confluences Indicator shows significant resistance at 1.1725 which is the confluence of the Fibonacci 61.8% one-month, the Fibonacci 61.8% one-week, and the Simple Moving Average 50-one-day. 

Higher above, 1.1792 is the convergence of the one-month high, the one-week high, the Pivot Point one-week Resistance 1, and the Pivot Point one-day Resistance.

On the downside, 1.1658 is the confluence of the Fibonacci 23.6% one-week, the Bolinger Band one-day Middle (Stdv. 2.2), the Fibonacci 38.2% one-day, and the Simple Moving Average 100-15m. 

It is closely followed by 1.1640 which is the meeting point of the Pivot Point one-day Support 1, the Fibonacci 38.2% one-month, and the Fibonacci 61.8% one-day. 

Lower, 1.1592 is another line to watch: it is the confluence of the Pivot Point one-day Support 2 and the Fibonacci 23.6% one-month. 

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