EUR/USD has dropped as the safe-haven dollar gained ground in response to worsening Sino-American relations, now also around Hong Kong. Can the currency pair recover? It seems well-positioned on the charts.
The Technical Confluences Indicator is showing that EUR/USD is trading above a cluster of strong support at 1.0922, which includes the Simple Moving Average 5-one-day, the Bollinger Band 15min-Lower, the Fibonacci 61.8% one-month, and the Pivot Point one-day Support 1.
Another cushion awaits at 1.0882, which is a convergence of levels such as the SMA 200-1h, the SMA 50-4h, and the previous yearly low.
Looking up, some resistance awaits at 1.0972, which is the meeting point of the 100-day SMA and the Fibonacci 161.8% one-week.
The upside target is 1.1041, which is the confluence of the Pivot Point one-day Resistance 2 and the previous monthly high.
Here is how it looks on the tool:
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.