EUR/USD path of least resistance is up on ECB day – Confluence Detector
EUR/USD has been unable to resume its gains as coronavirus grips markets and policymakers are scrambling to provide a response. The European Central Bank will announce its decision on Thursday. How is the currency pair positioned?
The Technical Confluences Indicator is showing that euro/dollar enjoys robust support at 1.1283, which is a dense cluster including the Fibonacci 161.8% one-month, the Fibonacci 23.6% one-day, the Pivot Point one-month Resistance 2, and more.
Looking up, the first noteworthy upside target is 1.1365, which is the convergence of the previous weekly high and the Bollinger Band 4h-Middle.
The upside target is 1.1436, which is the confluence of the PP one-week R1 and the Fibonacci 161.9% one-day.
Below 1.1283, the next support line is 1.1230, where the Fibonacci 38.2% one-week, the PP one-day S1, and the Bollinger Band 1h-Lower meet up.
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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