After the EUR/USD fell off the cliff described on Thursday, it is getting used to new lows. The Technical Confluences Indicator shows the new levels to watch on the downside. $1.2060 is the convergence of the Pivot Point one-week Support 3, the PP one-day S1 and the 15m low.
Further below, strong support awaits just below the round number. At $1.995 we see the potent Pivot Point one-month Support 2 and the Simple Moving Average 200 one-day. Even lower, the next cushion awaits at $1.19655, where the Fibonacci 161.8% one-month meets the Pivot Point one-day S3.
Looking up, we see much denser congestion areas. The $1.2090 level is the confluence of the SMA10-15m, the one-day high, the Bolinger Band one-hour Lower (Stdv. 2.2), the Bolinger Band 15m-Middle, and the SMA50-15m. It is closely followed by another cluster of resistance lines at $1.2120: the BB 1h-Middle, the SMA5-4h, the Fibo 23.6% one-day, and the Bolinger Band 15m-Upper.
All in all, the path of least resistance is to the downside.
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. This means 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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