EUR/USD eyeing 1.1284 as coordinated coronavirus action awaited – Confluence Detector
EUR/USD has been on the rise as expectations for rate cuts from the Federal Reserve and other central banks – in response to the coronavirus outbreak – are weighing on markets. Where next?
The Technical Confluences Indicator is showing that initial weak resistance awaits at 1.1162, which is the confluence of the Bollinger Band 15min-Upper and the Pivot Point one-month Resistance 1.
The most significant cap is only at 1.1284, which is a cluster including the PP one-month Resistance 2, the Fibonacci 161.8% one-month, and the PP one-day R2.
Support awaits at 1.1093, which is the confluence of the 200-day Simple Moving Average, the Fibonacci 61.8% one-day, and the previous monthly high.
Further down, additional noteworthy support is at 1.1035, which is where the BB 4h-Middle and the 50-day SMA converge.
Overall, the path of least resistance is down.
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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