The EUR/USD kicked off the new trading week with a downside move and now eyes the 2018 low. Will it bounce or break lower?
The Technical Confluences Indicator shows that the pair faces significant support around 1.1508. This is the convergence of the 2018 low, the Pivot Point one-week Support 1, and the Pivot Point one-day Support 3.
Below, there is some support at 1.1472, the Pivot Point one-month Support 2. However, the strongest support line is only at 1.1442which is the Fibonacci 161.8% one-month and the Pivot Point Support 2.
Looking up, the EUR/USD has a resistance confluence at 1.1574which is the meeting point of the Fibonacci 23.6% one-day and the Bolinger Band one-hour Middle.
Further above, 1.1604 is the convergence of the Pivot Point one-day Resistance 1, the Bolinger Band one-hour Upper and the Fibonacci 23.6% one-week.
The most significant level 1.1676 which is the Simple Moving Average 50-one-day, the Fibonacci 61.8% one-week, and the Bolinger Band one-day Middle.
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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