The EUR/USD is on the back foot on Friday after recovering on Thursday. Will it try to recover again? It may have a hard time.
The Technical Confluences Indicator shows that the pair will find it hard to recapture the 1.1695 level. This is the convergence of the Pivot Point one-week S1, the 1h-Lowe, the 4h-High, the Pivot Point one-day S1, and the Bollinger Band 15m-Lower Stdv. 2.2.
A move above this level will not have too much room to run as the next dense congestion of resistance lines awaits at 1.1720 which is the meeting point of the Fibonacci 61.8%, the Simple Moving Average 200-15m, the Simple Moving Average 5-4h, the Bolinger Band 15-Upper, and the BB 1h-Middle.
On the downside, some support awaits at 1.1660 which is the cluster of the Fibonacci 161.8% one-day, the Bollinger Band 1h-Lower, and the BB one-day Lower.
Further down, the next confluence of support lines only at 1.1590: the Pivot Point one-week Support 2 and the Pivot Point one-month Support 3.
All in all, the more potent lines are to the upside, leaving the path of least resistance to the downside.
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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