AUD/USD Price Analysis: One more hurdle to unleash further bullish upside – Confluence Detector

AUD/USD has been benefiting from optimism about a coronavirus vaccine and shrugging off concerns about the lockdown in Melbourne, also related to the disease. How is Aussie/USD positioned on the charts? 

The Technical Confluences Indicator is showing that AUD/USD is facing resistance at 0.7055, which is the convergence of the Pivot Point one-day Resistance 2 and the PP one-week R1, 

Beyond that hurdle, some resistance is at 0.7066, which is the previous monthly high, followed by 0.7103, the meeting point of the PP one-week R2 and the PP one-month R1. 

Support is at 0.7033, which is the confluence of the BB one-day Upper and the PP one-day R1. 

Further down, a considerable cushion is at the 0.7004 to 0.7012 region, an area which includes the Fibonacci 23.6% one-day, the Fibonacci 23.6% one-week, the Simple Moving Average 10-4h, and the Fibonacci 38.2% one-day. 

Another support confluence is at 0.6995, where the Fibonacci 61.8% one-day, the BB 1h-Lower, and the Fibonacci 38.2% one-week 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