AUD/USD is eyeing 0.6572 as next downside target – Confluence Detector

AUD/USD has been extending its decline to the lowest levels since 2009 amid the coronavirus scare and disappointing Australian jobs figures. After dipping below 0.66, where next for the Aussie?

The Technical Confluences Indicator is showing that the A$ is struggling around 0.6598, which is the convergence of the Bollinger Band 1h-Lower and the BB 4h-Lower. 

The most significant support line awaits at 0.6572, which is the meeting point of the Pivot Point one-week Support 3 and the PP one-month S1.

Robust resistance awaits at 0.6609, which is a dense cluster of lines including the Fibonacci 161.8% one-week, the Simple Moving Average 5-1h, the SMA 10-1h, and the previous daily low. 

Further up, 0.6642 is the upside target, a point where the Fibonacci 38.2% one-day, the SMA 10-4h, the BB one-day Lower, and the BB 1h-Upper all meet. 

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.

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