EUR/USD recovery seen capped at 1.1747, a fall could end below 1.1600 — Confluence Detector

The EUR/USD is recovering from the lows as the US Dollar gives ground. Is this recovery real or just a dead cat bounce? 

The Technical Confluences Indicator shows that a dense and potent cluster of resistance awaits at 1.1747. This is the convergence of the Simple Moving Average 50-1h, the SMA 200-15m, the Fibonacci 61.8% one-day, the one-month low, and the one week low.

Should the pair have enough momentum to break higher, 1.1820 is the confluence of the Pivot Point one-month Support 2, the SMA 10-1d, and the Bolinger Band one hour Upper (Stdv. 2.2).

The pair may have a battle in both directions around 1.1723 which is the meting point of the SMA 5-15m, the Bolinger Band one-hour Upper, the Fibonacci 38.2% one-day, Bolinger Band 15m-Upper, and the SMA 10-15m.

Yet below 1.1723, it may be a painful free-fall plunge all the way to 1.1595. This the first strong cluster featuring the Pivot Point one-month Support 3 and the Pivot Point one-week Support 2.

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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