EUR/USD may find it hard to recapture 1.1600 and the road is open to 1.1493 – Confluence Detector

The EUR/USD is still licking its wounds from the one-two punch dealt by Draghi and Powell last week but may have a hard time to recover. 

The Technical Confluences Indicator shows that the 1.1596 is a dense cluster of resistance lines, the Bolinger Band 15m-Middle, the Simple Moving Average 10-4h, the SMA 10-15m, the SMA 5-15m, the Fibonacci 38.2% one-day, and the Bolinger Band 15m-Upper. 

Should the pair overcome this level, 1.1650 poses the next challenge as it is the convergence of the potent Fibonacci 23.6% one-month and the Pivot Point one-day Resistance 1. The most significant resistance line is at 1.1729 which is the confluence of the SMA 10-one-day, the Pivot Point one-day Resistance 3, and the Fibonacci 38.2% one-month.

On the downside, there are fewer support lines of substance. 1.1578 is the meeting point of the Fibonacci 61.8% one-day and the 4-h high. However, this is not a significant line, and stronger support awaits only at 1.1493 which is where the Bolinger Band 1h-Lower, the Fibonacci 161.8% one-day, and the Pivot Point on-week Support 1 converge. 

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