EUR/USD jumped on Powell's dovish words on Wednesday, taking advantage of the dollar's weakness to advance and settle on higher ground. What's next?
The Technical Confluences Indicator shows that the pair is well supported from 1.1384 to 1.1360. This dense cluster includes the Fibonacci 38.2% one-week, the Bollinger Band 15m-Middle, the Simple Moving Average 10-1h, the Fibonacci 23.6% one-month, the SMA 10-one-day, the SMA 50-4h, the SMA 200-1h, the Fibonacci 23.6% one-week, and the Bollinger Band one-day Middle among others.
The next target is not too far. At 1.1420 we see the convergence of the Pivot Point one-day Resistance 1, the Fibonacci 61.8% one-week, the Fibonacci 38.2% one-month, and the Pivot Point one-week Resistance.
If 1.1420 is broken, EUR/USD could run quite quickly all the way to 1.1526 where we see the confluence of the Pivot Point one-week Resistance 2, the Pivot Point one-month Resistance 1, and the SMA 100 one day.
All in all, the upside is more appealing than the downside.
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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