The EUR/USD is trading lower as the US Dollar sweeps the board. While it has some room to recover, the path of least resistance remains to the downside.
The Technical Confluences Indicator shows that the most significant hurdle awaits at the 1.1685 region which is the congestion of the potent Fibonacci 38.2% one-day, the Fibonacci 388.2% one-week, the Bolinger Band one-hour-Middle, and the Simple Moving Average 100-15m. This high level leaves room for recovery, but this recovery will not be too easy.
1.1654 is the convergence of the Simple Moving average 10-1h, the SMA 50-15m, the one-day high and the SMA 5-1h. A minor line is 1.1641 which is the SMA 10-15m and the Fibonacci 38.2% one-month.
Looking down, the road is smoother. Some support awaits at 1.1589which is the meeting point of the Fibonacci 23.6% one-month and the Pivot Point one-day Support 2.
Lower, some support awaits at 1.1557 which is the Bolinger Band one-day Lower before the 2018 nadir of 1.1508.
All in all, it is clear to see that rising is harder than falling.
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.
Learn more about Technical Confluence