EUR/USD has extended its falls and trades at the lowest since the spring of 2017. Can it recover or continue lower?
The Technical Confluences Indicator is showing that euro/dollar has only weak support clusters on its way down, with a meaningful cushion only at 1.0753, which is the convergence of the Pivot Point one-week Support 3 and the PP one-month S3.
Looking up, resistance is fierce. The initial cap is at 1.0850, which is a juncture of lines including the Simple Moving Average 5-4h, the Bollinger Band 1h-Middle, the PP one-week S2, and the Fibonacci 23.6% one-day.
Next, a dense resistance cluster is at 1.0877, where the following lines are found: the SMA 50-1h, the PP one-day R1, the BB 1h-Upper, the Fibonacci 61.8% one-day, the PP one-month S2, and the SMA 200-15m.
Finally, another significant cap awaits at 1.09, which is the confluence of the PP one-week S1, the SMA 100-1h, and the SMA 5-one-day.
Overall, the path of least resistance is down.
Here is how it looks on the tool:
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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