EUR/USD is locked in a well-defined range – Confluence Detector

EUR/USD has been trading around the 1.1200 level in recent days as markets are moving on every headline in the US-Sino trade wars. The technical chart helps explain the current moves and defines the next ones.

The Technical Confluences Indicator is showing that EUR/USD faces resistance at 1.1222 which is a dense cluster of lines including last year's low, the Fibonacci 38.2% one-day, the Simple Moving Average 5-1h, the SMA 5-4h, the Bollinger Band 15min-Upper, and more.

Further up, the next cap is close. At 1.1239 we find the convergence of the BB 1h-Upper, the Pivot Point one-week Resistance 2, and the SMA 50-one-day.

Looking down, a plethora of support lines culminate at 1.1169 which is the confluence of lines including the previous weekly high, the SMA 100-4h, the PP 1d-S1, the SMA 100-1h, the previous daily low, and the Fibonacci 38.2% one-month.

Lower, support awaits at 1.1146 which is the meeting point of the PP 1d-S2, the SMA 200-1h, the SMA 50-4h, and the SMA 10-1d.

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. 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