The EUR/USD managed to recover on the reports that Italy plans a lower budget deficit for the early 2020s. Can it extend continue higher? A bit more.
The Technical Confluences Indicator shows that the EUR/USD faces significant resistance at 1.1630 where we see a convergence of the Fibonacci 161.8% one-day, the Fibonacci 23.6% one-week, the Pivot Point one-day Resistance 2, and the Simple Moving Average 5 one-day.
Higher, there are substantial caps in a dense area, culminating at 1.1668 which is the confluence of the Fibonacci 38.2% one-week, the Bolinger Band one-day Middle, and the Pivot Point one-day Resistance 3.
Looking down, many support lines are spread out with significant support awaiting at 1.1530 which is the congestion of the Fibonacci 23.6% one-day, last month's low, and the Bollinger Band 4h-Lower.
Close by, 1.1511 is the meeting point of the one-day low and the Pivot Point one-day Support 1.
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. 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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