Market Overview

AUD/USD About To Lose A Critical Line Of Support — Confluence Detector


According to the Technical Confluences Indicator shows that the recent slide of the AUD/USD brings it to an area where many significant technical lines converge. The A$0.7765 level is the confluence of the Bolinger Band 1--Lower Stdv. 2.2, the one-month low, the one-week low, a one-day high and several other lines.

A fall below this level will still see some support that is scattered around all the way to 0.7645, but it is not as strong as 0.7665 and the pair could free-fall all the way to 0.7500, where it began the long road to the upside.

In case the pair recovers, a strong cluster of resistance awaits at 0.7715. This is the confluence of the Fibo 38.2 percent one week, the SMA50-4h, the SMA5-1d, the Bolinger Band 1h-Upper Stdv 2.2 and the BB 1h-Middle Stdv 2.2.

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. This means 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

Posted-In: FXStreetNews Forex Markets


Related Articles

View Comments and Join the Discussion!

EUR/USD Forecast: Immediate Outlook Remains Bullish, Looks Into US GDP For Fresh Impetus

Tesla Weakness Could Be 'One Of The Buying Opportunities Investors Have Been Waiting For,' Says Morgan Stanley