EUR/USD in a tight range but ready to explode on the Fed decision – Confluence Detector

The EUR/USD is locked between dense clusters of technical levels as tension grows ahead of the all-important decision of the Federal Reserve. Fed Chair Powell and his colleagues are indeed able to send the pair out of range. 

The Technical Confluences Indicator shows that the EUR/USD is battling the 1.1760 area where we see a congestion of the following levels: the Bolinger Band 15m-Lower, the BB 4h-Middle, the Fibonacci 23.6% one-week, the Simple Moving Average 200-15m, the SMA 50-one-hour, the 15m-low, the 1h-low, the SMA 5-1h, and the SMA 10-4h. It is further supported below by the BB 1h-lower, the SMA 100-1h, the Fibonacci 61.8% one-day, and the 4h-low.

Lower, we see weaker support at 1.1733 which is the confluence of the BB 4h-lower, the Fibonacci 38.2% one-week, and the Pivot Point one-day Support 1.

The upside is quite dense as well. At 1.1795 we see the convergence of the Pivot Point one-month Resistance 1, the one-day high, the BB 1h-Upper, the BB 4h-Upper, and the BB one-day Upper. 

Close by, at 1.1807 we see the convergence of the monthly high, the weekly high, PP one-day Resistance 1.

Weak resistance then awaits at 1.1831 which is the convergence of the PP one-day Resistance 2, and the PP one-week R1.

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