EUR/USD faces substantial resistance and may extend losses – Confluence Detector
EUR/USD has been looking for a new direction as the coronavirus outbreak continues making headlines. How is the world's most popular currency pair positioned?
The Technical Confluences Indicator is showing that euro/dollar is capped by a dense cluster of lines around 1.1052, which includes the Fibonacci 23.6% one-month, the Simple Moving Average 1001-h, the SMA 10-4h, the Fibonacci 61.8% one-day, the Bollinger Band 1h-Middle, the Fibonacci 38.2% one-day, and the SAM 5-one-day.
Further above, EUR/USD has a long list of hurdles all the way up to 1.1109, which is the meeting point of the BB 4h-Upper and the 50-day SMA.
Support awaits at 1.0995, which is the convergence of the previous monthly low, the BB one-day Lower, and the Pivot Point one-day Support 3.
Further down, 1.10926 is the confluence of the Pivot Point one-week S3 and the Fibonacci 161.8% one-week.
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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