AUD/USD path of least resistance remains to the upside – Confluence Detector
AUD/USD has been edging lower as the market mood deteriorated. Nevertheless, the Aussie gained ground and remains in a pole position to continue higher.
The Technical Confluences Indicator is showing that AUD/USD has strong support at 0.6439, which is the convergence of the Fibonacci 38.2% one-day, the Bollinger Band 1h-Lower, and the Simple Moving Average 10-4h.
Further down, another considerable cushion awaits at 0.6409, which is the meeting point of the Pivot Point one-day Support 1 and the previous weekly high.
Soft resistance awaits at 0.6455, which is the confluence of the SMA 10-1h, the SMA 50-15m, the SMA 504h, and more.
Further up, the target is 0.6473, which is where the previous day's high and the BB 1h-Upper converge.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
