EUR/USD has been gradually losing ground as trade tension and speculation about the Fed mount. The final top-tier US indicator is due today – retail sales. How low can it go?
The Technical Confluences Indicator shows that EUR/USD is currently mired in a dense cluster of technical lines around 1.1285. The area includes the Bollinger Band 15min-Upper, the Simple Moving average 100-15m, the Fibonacci 38.2% one-day, the previous 4h-high, the SMA 5-15m, the SMA 10-15m, the BB 15min-Middle, the SMA 10-1h, the Fibonacci 23.6% one-day, and the Fibonacci 38.2% one-week.
Strong support awaits at 1.1220 which is the convergence of the previous yearly low, the Bollinger Band 1d-Middle, and the SMA 50-1d. These are all potent lines.
Initial resistance awaits at 1.1308 which is the confluence of the Fibonacci 23.6% one-week, the BB 4h-Middle, and the SMA 5-1d.
The next considerable cap is at 1.1350 where the BB 4h-Upper, the BB 1d-Upper, and the previous week's high converge.
Here is how it looks on the tool:
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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