UR/USD No Longer Bullish, Has A Clear Range — Confluence Detector

This article orginally appeared on FXStreet.

The EUR/USD enjoyed impressive gains but then stalled. Is it just a consolidation before another leg up? Not necessarily. The pair has a clear range. 

The Technical Confluences Indicator shows that the EUR/USD is trading within a wide range between 1.1867 and 1.1732. On the upside, the 1.1867 is the convergence of the Fibonacci 61.8% one-month, the Fibonacci 161.8% one-week, the Pivot Point one-day Resistance 2, and the Bolinger Band 1h-Upper.

On the downside, strong resistance awaits at 1.1732 which is the confluence of the Fibonacci 161.8% one-day, the Fibonacci 38.2% one-month, and the Pivot Point one-day Support 2, all potent lines.

In the middle of the range, 1.1806 is notable for the congestion of the Simple Moving Average 50-15m, the SMA 10-1h, the Bolinger Band 15m-Middle, the SMA 5-15m, the SMA 5-4h, the Bolinger Band 1h-Middle, the Bolinger Band 15m-Upper, and the SMA 100-15m. 

On the upside, 1.1942 is notable as the Bolinger Band 1d-Upper. On the downside, 1.1702 may be a downside target as it is the meeting point of the Pivot Point one-day Support 3, the SMA 200-1h, and the SMA 50-4h.

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