EUR/USD path of least resistance is down as Q3 draws to a close – Confluence Detector

EUR/USD has been losing ground on Friday and kicks off the new week in a limited range as several figures are awaited. Where next for the world's most popular currency pair in the last full week of the third quarter? 

The Technical Confluences Indicator is showing that EUR/USD is capped around 1.1029, which is a dense cluster of technical lines including the Simple Moving Average 10-15m, the Fibonacci 38.2% one-day, the previous 4h-high, the Fibonacci 38.2% one-week, the SMA 100-15m, the SMA 100-4h, the Fibonacci 23.6% one-month, the SMA 10-4h, the SMA 5-1d, and more. 

Further up, another significant cap awaits the currency pair at 1.1074, which is the convergence of the Pivot Point one-week Resistance 1, and the Fibonacci 38.2% one-month. 

The next upside target it 1.1015, which is the meeting point of the BB `d-Upper, the SMA 50-1d, and the Fibonacci 161.6% one-day.

Some support awaits at 1.1017, which is the confluence of the Fibonacci 23.6% one-day, the Fibonacci 23.6% one-week, the SMA 5-4h, and the BB 15min-: Lower.

However, more significant support is only at 1.0891, where the PP 1m-S1 and the PP 1w-S3 hit the price. 

All in all, the path of least resistance is down.

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