EUR/USD capped by strong resistance lines, has room to fall – Confluence Detector

EUR/USD has been under pressure, struggling around 1.08 amid concerns that the European Central Bank will be unable to support struggling countries.

The Technical Confluences Indicator is showing that euro/dollar is capped at 1.0811, which is a dense cluster of lines including the Fibonacci 23.6% one-month, the Simple Moving Average 5-4h, the Bollinger Band 15min-Upper, the Fibonacci 38.2% one-day, the SMA 100-15m, and the previous weekly low.

Further up, significant resistance awaits at 1.0878, which is the convergence of the SMA 200-1h, the BB one-day-Middle, the SMA 50-4h, and the previous weekly low.

Looking down, weak support awaits at 1.0772, which is the confluence of the Pivot Point one-day Support 1, the PP one-month S1, the BB 4h-Lower, and the BB one-day Lower.

The next cushion is somewhat more robust. At 1.0727, the previous monthly low and the PP one-week S2 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

Add a comment