The EUR/USD traded in a narrow range on the US holiday and awaits big events today. While it has a lot of support, moving up may not be that easy?
The Technical Confluences Indicator shows that the pair has a lot of support at around 1.1645. The area is a congestion consisting of the following levels: the Fibonacci 38.2% one-week, the Bolinger Band 1h-Middle, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, the Simple Moving Average 200-1h, the Fibonacci 23.6% one-day, the SMA 100-4h, and the SMA 10-one-day.
If this support holds up, it does not necessarily mean an immediate rally. At 1.1664 we see a convergence including the Simple Moving Average 10-1h, the Bolinger Band 15m-Middle, the BB one-day-Middle, the Fibonacci 61.8% one-day, and the Bolinger Band 15m-Upper.
Further above, 1.1725 is the confluence of the Fibonacci 61.8% one-month and the Fibonacci 161.8% one-day. Even higher, 1.1766 which is the Pivot Point one-week Resistance 1 and the SMA 50-one-day.
On the downside, we see 1.1603 as a target as it is the meeting point of the Fibonacci 61.8% one-week and the Pivot Point one-day Support 2.
A low target is the 2018 low of 1.1508 which also converges with the Pivot Point one-month Support 1.
All in all, resistance lines are weaker than support lines.
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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