AUD/USD Price Analysis: Recapturing 0.6990 key to resuming rally – Confluence Detector


AUD/USD has been on the back foot after Melbourne was put under a strict six-week lockdown after COVID-19 cases. Victoria's decision to shutter Australia's second-largest city finds Aussie/USD in a vulnerable spot on the graphs.

The Technical Confluences Indicator is showing that AUD/USD faces several resistance clusters on the way up. 0.6953 is the convergence of the Fibonacci 38.2% one-day, the Bollinger Band 4h-Middle, and the Simple Moving Average 10-4h. 

Further up, significant resistance is at 0.6990, which is the meeting point of the Pivot Point one-week Resistance 1, the PP one-day R1, the BB 4h-Upper, and the BB one-day Upper. 

Support awaits at 0.6928, which is the confluence of the BB 4h-Lower, the BB 1h-Lower, and the Fibonacci 23.6% one-week. 

The most significant support is at 0.6910, where the Fibonacci 38.2% one-week, the SMA 10-one-day, and the Fibonacci 38.2% one-week 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.

Learn more about Technical Confluence

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