The EUR/USD continues "hugging" the 1.1600 level ahead of the all-important meeting of the European Central Bank on Thursday.
The Technical Confluences Indicator shows that the pair is currently trading around the 1.1585 confluence zone which consists of the Fibonacci 38.2% one-week and the Bolinger Band 15m-Lower.
On the topside, the pair faces a cluster of resistance around 1.1614 which is the convergence of the Fibonacci 61.8% one-week, the Simple Moving Average 50-one-day, the SMA 100-4h, and the Fibonacci 38.2% one-day.
On the downside, we see 1.1572 as close support. We see here the Pivot Point one-day Support 1, the SMA 200-4h, and the Fibonacci 61.8% one-month.
A break from the 1.1572 to 1.1614 zone opens the door to more significant moves as clusters of support and resistance are relatively week. The 1.1735 level is a mix of the Pivot Point one-day Resistance 3 and last month's high. A low downside target is 1.1469 where we see the Fibonacci 38.2% one-month and the
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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.
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