EUR/USD may find it hard to recover under strong resistance – Confluence Detector

EUR/USD has been looking for a new direction amid the rout in the oil market and ahead of the EU Summit. How is the currency pair positioned on the charts? 

The Technical Confluences Indicator is showing that euro/dollar is struggling around 1.0862, which is a dense cluster of lines including the Fibonacci 61.8% one-day, the Bollinger Band 4h-Middle, the Simple Moving Average 100-1h, and more. 

Strong resistance awaits at 1.0884, which is the convergence of the previous yearly low, the Fibonacci 38.2% one-week, the Pivot Point one-day Resistance 1, and more. 

The upside target is 1.0968, which is a juncture including the SMA 200-4h, the Fibonacci 38.2% one-month, and the Pivot Point one-week Resistance 1.

Some support awaits at 1.0839, which is the confluence of the Fibonacci 38.2% one-day and the Fibonacci 23.6% one-month. 

Further down, the target is 1.0794, where the PP one-day S2 and the PP one-week S1 converge. 

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