EUR/USD is locked in a clear range with a tendency to the downside – Confluence Detector

EUR/USD has been unable to extend its gains after US inflation beat expectations. Where next for the world's most popular currency pair? 

The Technical Confluences Indicator shows that EUR/USD is mired in the mud of heavyweight technical levels around 1.1273. These include the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-day, the Simple Moving Average 50-15m, the SMA 100-15m, the Bollinger Band 15min-Lower, the SMA 10-one-day, the previous 4h-high, the Fibonacci 23.6% one-day, and more.

Looking up, it faces a hurdle at 1.1320 which is the meeting point of the Fibonacci 38.2% one-month, the Fibonacci 61.8% one-week, and the Pivot Point one-day Resistance 3. 

Support awaits at 1.1220, which is the convergence of the Pivot Point one-month Support 1, the Fibonacci 161.8% one-day, the PP one-day Support 2, and more.

Further support awaits at 1.1168 – but this is already a weak cushion. It consists of the PP one-week S1 and the previous monthly low.

All in all, support is weaker than resistance.

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