EUR/USD path of least resistance is up ahead of Draghi's last decision – Confluence Detector

EUR/USD is awaiting Mario Draghi's last decision as President of the European Central Bank. How is it positioned? 

The Technical Confluences Indicator is showing that the world's most popular currency pair is struggling with 1.1139, which is the convergence of the Simple Moving Average 5-15m, the SMA 50-15m, the SMA 10-1h, the SMA 10-15m, the SMA 100 one day, the Bollinger BAnd 15min-Middle, and the BB 1h-Upper. 

Looking up, some resistance awaits at 1.1185, which is the meeting point of the Pivot Point one-day Resistance 3 and the BB one-day Upper. 

Further above, 1.1215 is the next upside target. It is the confluence of the previous yearly low, the SMA 200-one-day, and the PP one-week Resistance 3. 

Strong support awaits all the way down, with a dense cluster standing out at 1.1092. This includes the SMA 10-one-day, the PP one-day S2, the Fibonacci 161.8% one-day, and the PP one-week Resistance 1. 

Further down, EUR/USD has support at 1.1023, which is where the BB one-day Middle, the SMA 200-4h, the Fibonacci 38.2% one-week, and the Fibonacci 61.8% one-month converge. 

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