EUR/USD has been retreating from the highs as hawkish comments from a member of the European Central Bank only lifted the currency pair temporarily. Euro-zone and US inflation figures are due out later today and the technical picture looks unfavorable.
The Technical Confluences Indicator is showing that EUR/USD has weak support at 1.1018, which is the convergence of the Pivot Point one-day Support 2 and the PP one-week S2.
Further down, the next support line is also weak and already awaits euro/dollar below 1.1000. At 1.0984 we see the confluence of the PP 1d-S3 and the Fibonacci 161.8% one-week.
Looking up, EUR/USD faces fierce resistance at 1.1064, which is a dense cluster of lines including the Bollinger Band 1h-Middle, the previous monthly low, the Fibonacci 38.2% one-day, and the Simple Moving Average 100-15m.
The next cap is also considerable. At 1.1093 we see the SMA 10-1d, the Fibonacci 61.8% one-week, and the SMA 50-4h converge.
Another hurdle awaits at 1.1133, which is the meeting point of the Fibonacci 23.6% one-week, the BB 1d-Middle, and more.
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.
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