EUR/USD Does Not Have Much Support After The Fall

According to the Technical Confluences Indicator, the EUR/USD may find solid support only at around $1.2330. The area is a dense cluster of technical lines: Fibo 38.2% 1w, the SMA200-h1, the SMA50-4h, the SMA200-4h, the SMA5-1d, Bolinger Band 1d-Middle Stdv 2.2, the Fibo 38.2% one month, the SMA10-1d, and the SMA50-1d.

The significant confluence makes it a fortified area of support but above this level, there is not too much on the way down.

Looking up, significant resistance is at $1.2415, a cluster of lines including the Fibo 61.8%, one-month, Pivoit Point 1w R1, the SMA10-4h, and the Fibo 38.2% 1d. The next line to watch is $1.2445, where the Bolinger Band 1h-Middle, Stdv 2.2, Pivot Point one-month R1, the SMA5-4h, and the Bolinger Band 1d Upper all converge.

These three technical confluence levels are clear and may determine the next moves.

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. 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.