AUD/USD Price Analysis: Support only at 0.6909 after Melbourne put under lockdown – Confluence Detector

AUD/USD has been on the back foot after Melbourne was put under a strict six-week lockdown after COVID-19 cases. Victoria's decision to shutter Australia's second-largest city finds Aussie/USD in a vulnerable spot on the graphs.

The Technical Confluences Indicator is showing that AUD/USD has weak support at around 0.6955, which is the convergence of the previous weekly high, the Bollinger Band 15min-Lower, and the Fibonacci 61.8% one-day.

Significant support is only at 0.6909, which is a cluster including the BB 4h-Lower, the Fibonacci 38.2% one-month, and the Fibonacci 38.2% one-week. 

Initial resistance is at 0.6966, which is the confluence of the SMA 10-4h, the Fibonacci 38.2% one-day, and the Fibonacci 23.6% one-month. 

The next hurdle is at 0.6991, where the previous daily high, the BB 1h-Upper, and the BB one-day Upper 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.

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