EUR/USD has one support area left before the next plunge – Confluence Detector

EUR/USD has been unable to recover after losing the 1.09 level and is consolidating its losses. Where next for the world's most popular currency pair? It has some support, but a may find it hard to recover. 

The Technical Confluences Indicator is showing that EUR/USD enjoys support at 1.0887, which is the convergence of the Bollinger Band one-hour Lower, the previous day's low, the previous hourly low, the Pivot Point one-week Support 1, the Simple Moving Average 10-15 minutes, and the BB 4h-Lower. 

If it loses that cushion, it could target 1.0825, which is where the Pivot Point one-month Support 1 and the PP daily S1 hit the price.

Looking up, fierce resistance awaits at 1.0939, which is the confluence of the all-important Fibonacci 23.6% one-week, the PP one-day R1, and the Fibonacci 23.6% one-month. 

Further up, the next target is 1.0973, which is the meeting point of the Fibonacci 38.2% one-month, the SMA 50-4h, and the Fibonacci 61.8% one-week.

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