EUR/USD path of least resistance is up ahead of Draghi – Confluence Detector

EUR/USD consolidates its recovery around 1.1400 after ECB President Mario Draghi was one of the protagonists of the recent volatility. Draghi will speak again later today amid a technically favorable environment for the euro.

The Technical Confluences Indicator shows that that the world's most popular currency pair has significant support around 1.1390 which is the convergence of the Simple Moving Average 10-one-day, the Fibonacci 23.6% one-week, and the Fibonacci 23.6% one-day.

Further support is close by. At 1.1375 we see a juncture including the Bollinger Band four-hour Middle, the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-day, the SMA 100-1h, the SMA 5-1d, and the SMA 10-4h. 

Looking up, the clusters of resistance are not as massive. At 1.1439 we see the meeting point of the Fibonacci 23.6% one-month and the Bollinger Band 4h-Upper. 

The next meaningful cap is only at 1.1533 which is the confluence of the BB one-day Upper and the Pivot Point one-month Resistance 1.

All in all, the upside is more appealing. 

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