EUR/USD is moving up to around 1.1300 in the wake of the new week after tumbling down on Friday. Fears of a looming recession weigh on the mood. What's next?
The Technical Confluences Indicator shows that the euro/dollar faces tough resistance at 1.1330 where a dense cluster of resistance lines awaits it. This includes the Simple Moving Average 200-4h, the Bollinger Band one-day Middle, the SMA 10-4h, the SMA 10-one-day, the Fibonacci 38.2% one-month, the SMA 200-1h, and the Fibonacci 38.2% one-week.
If it breaks higher, the next cap awaits at 1.1395 which is where the Fibonacci 61.8% and the previous daily high converge.
Looking down, weak support awaits at 1.1295 where we see the confluence of the BB 1h-Middle, the SMA 10-1h, the SMA 50-15m, the BB 15min-Middle, and the Fibonacci 23.6% one-day.
Further down, more significant support awaits at 1.1242 where the convergence of the previous monthly low and the Pivot Point one-week Support 1 awaits the pair.
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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