EUR/USD path of least resistance is up ahead of the ECB – Confluence Detector

EUR/USD has been trading in range ahead of the all-important European Central Bank decision. How is the world's most popular pair positioned? 

The Technical Confluences Indicator is showing that euro/dollar is trading above a significant support line at 1.0864, which is the convergence of the Simple Moving Average 10-15m, the Bollinger Band 15min-Middle, the BB 1h-Middle, and the Fibonacci 38.2% one-day. 

Even more robust support awaits at 1.0837, which is a juncture including the SMA 50-4h, the SMA 200-1h, the Fibonacci 61.8% one-week, and the Pivot Point one-day Support 1.

Looking up, somewhat weaker resistance awaits at 1.0879, which is the confluence of the previous year's low and the BB 1h-Upper. 

Next up, 1.09 is the meeting point of the previous weekly high and the PP one-day R1. 

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