EUR/USD recovery faces significant resistance at 1.0785 – Confluence Detector
EUR/USD has been recovering on Monday after succuming to King Dollar last week amid the coronavirus crisis. Can it extend its gains? It may hit limits.
The Technical Confluences Indicator is showing that significant resistance awaits EUR/USD at 1.0785, which is the convergence of the previous month's low and the Fibonacci 38.2% one-week.
Further up, the next level to watch is 1.0850, which is the meeting point of the Pivot Point Support 1, the Fibonacci 23.6% one-month, and the Simple Moving Average 100-1h.
Looking down, weak support awaits at 1.0711, which is where the Fibonacci 61.8% one-day and the SMA 100-15m.
Significant support is at 1.0660, which is the confluence of the Pivot Point one-month Support 2, the previous 4h-low, and the BB 1h-Lower.
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.