EUR/USD locked in tight range, upside looks more appealing – Confluence Detector

EUR/USD has returned to range after failing to rise above 1.11. Is it set to fall? Not so fast. The charts marginally favor the upside.

The Technical Confluences Indicator is showing that EUR/USD faces resistance at 1.1075, which is a cluster of lines including the Simple Moving Average 200-15m, the SMA 50-1h, the SMA 100-1h, the SMA 10-4h, the Bollinger Band 4h-Middle, and the BB one-day Middle.

Looking down, support is stronger. At 1.1047, we find fewer but stronger lines. These include the Fibonacci 23.6% one-week, the SMA 10-1d, the SMA 50-1d, the SMA 200-1h, and the SMA 50-4h. 

Below, euro/dollar has support at 1.0966, which is where the Pivot Point one-month Support 1 and the PP 1w-S2. 

Above, the target is 1.1179, which is the confluence of the previous monthly high and the SMA 200-one-day. 

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