EUR/USD has dropped on the dovish words from European Central Bank President Mario Draghi's and now the focus shifts to the Federal Reserve. The charts show that the path of least resistance is to the downside.
The Technical Confluences Indicator shows that EUR/USD faces fierce resistance at 1.1208 which is the convergence of the Bollinger Band one-hour-Upper, the Fibonacci 38.2% one-day, the Fibonacci 61.8% one-month, the BB 15min-Upper, and last week's low.
If the world's most-popular currency pair manages to overcome this hurdle, it faces a minefield of lines on the way up with the most significant hurdle awaiting at 1.1272 which is the confluence of the Simple Moving Average 100-1d, the Pivot Point one-day Resistance 2, the BB 4h-Upper, and more.
Looking down, weak support awaits at 1.1168 where the Fibonacci 38.2% one-month, the PP 1d-S1, and the BB 4h-Lower converge.
However, substantial support is only at 1.1110 which is the confluence of the PP 1d-S3, last month's low, and the PP 1w-S2.
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.
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