EUR/USD is moving ever so slowly to the downside and this may be frustrating many traders, but can be explained by the density of technical levels. However, the currency pair is leaning lower and may lose support.
The Technical Confluences Indicator is showing that euro/dollar is mired in a dense cluster of lines extending from 1.1006 to 1.1018 and also a tad higher. The area that limits price action includes the Simple Moving Average 10-1h, the Bollinger Band 15min-Middle, the SMA 5-15m, the SMA 5-1h, the BB 1h-Middle, the Fibonacci 38.2% one-day, the previous daily low, the BB 1h-Lower, the BB one-day Lower, and many more.
Lower, support awaits at 1.0960, which is the convergence of the Pivot Point one-month Support 1 and the PP one-day S3.
Further down, the downside target is 1.0879, which is the one-month low.
Looking up, fierce resistance awaits at 1.1075, where the PP one-day R3 and the Fibonacci 38.2% one-month among others.
Higher, 1.1109 is the confluence of the SMA 100 one-day and the Fibonacci 23.6% one-month.
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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