The EUR/USD is getting comfortable in a range, but it may not stay that way. When the pair chooses a direction, it may be to the upside. The Technical Confluences Indicator shows that the EUR/USD has lots of support on the downside and not so much resistance to the upside.

There is a definite congestion of support at around $1.2350. This is the meeting point of the SMA200-15m, the SMA50-1h, the one-week high, Pivot Point one-week R1, Bolinger Band one-hour Lower (Stdv 2.2), the Fibo 38.2% one-day, the Fibo 38.2% one-month, and the SMA50 one-day. This clear confluence provides a lot of support.

Looking up, the technical resistance lines are scattered with perhaps more resistance at $1.2425. This is a convergence of the PP one-day R2 and the Fibo 161.8% one-week. More serious resistance is only around $1.2480: the confluence of the PP one-week R2, the one-month high, and the Pivot Point one-month R1.

Below $1.2350, we find further support around $1.2325, where the SMA200-4h, Bolinger Band one-day-Middle, PP one-day S1, and BB one hour Middle all meet.

Here is how it looks on the tool:

Confluence Detector

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. This means 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.

Print Friendly, PDF & Email