EUR/USD may have finally found a bottom, but if not, $1.1775 is next — Confluence Detector


The EUR/USD continues its journey south with the vomiting camel pattern. It is already over 700 pips from the highs but may have found some support.

The Technical Confluences Indicator shows that $1.1825 is a congestion of several potent technical levels: the Pivot Point one-month S2, the one-hour low, the Bolinger Band 15m-Lower (Stdv. 2.2) and the Simple Moving Average 5-15m. 

A fall below this level opens the door to $1.1775 which is the Pivot Point one-week Support 2, a significant line, but it is all alone down there. 

Looking up, resistance awaits at $1.1870 which is the confluence of the Simple Moving Average 100-15m, the Bolinger Band 15m-Upper, the Pivot Point one-week Support 1, and the SMA5-4h.

Higher above, the next level to watch is mighty: $1.1915 is a convergence of the one-month low and the one-week low. 

All in all, the pair faces much more resistance to the upside than to the downside and the $1.1825 is a critical level. 

Here is how it looks on the tool:

EUR USD confluence technical levels May 9 2018

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.

Learn more about Technical Confluence

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