EUR/USD capped by strong resistance and my struggle to recover – Confluence Detector
EUR/USD is trading below 1.1150, unable to take advantage of the dollar's weakness, ahead of consumer confidence. How is the world's most popular currency pair positioned?
The Technical Confluences Indicator is showing that euro/dollar is capped at 1.1142, which is a dense cluster including the Bollinger Band 15min-Middle, the Simple Moving Average 100-1h, the SMA 200-one-day, the Fibonacci 23.6% one-day, the SMA 10-one-day, the BB 1h-Middle, and many more.
Looking up, another significant hurdle awaits at 1.1195, which is the convergence of the Pivot Point one-week Resistance 1, the PP one-day R2, and the Fibonacci 23.6% one-month.
Looking down, support awaits at 1.1095, which is the confluence of the Fibonacci 61.8% one-month, the SMA 50-one-day, and the PP one-day S2.
Further down, another cushion is at 1.1072, which is the meeting point of the PP one-month S1 and the SMA 100-one-day.
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.
Learn more about Technical Confluence