EUR/USD is on fragile ground and may potentially plunge – Confluence Detector
EUR/USD has dipped below 1.09 but remains above that line for now. Where next for the world's most popular currency pair?
The Technical Confluences Indicator is showing that euro/dollar has support at 1.0902, which is the convergence of the Pivot Point one-week Support 1, the PP one-day S1, the previous daily low, and the Bollinger Band four-hour Lower.
Further down, critical support awaits at 1.0880, which is the meeting point of 2019 low and the PP one-day S2.
Looking p, some resistance is at 1.0948, where the Simple Moving Average 100-1h and the SMA 5-one-day converge.
Higher, EUR/USD faces fierce resistance at the 1.10992 to 1.1005 region, which is a dense cluster of lines including the Fibonacci 23.6% one-week, the BB 4h-Upper, the PP one-month S1, the previous month's low, the SMA 200-1h, the SMA 50-4h, and the all-important Fibonacci 38.2% 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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