Gold prices have been under pressure as investors seem more relaxed around the coronavirus outbreak. How is XAU/USD positioned on the technical charts?
The Technical Confluences Indicator is showing that Gold capped at $1,572, which is a cluster of lines including the Fibonacci 61.8% one-day, the Simple Moving average 50-15m, the SMA 10-4h, the SMA 100-15m, the Bollinger Band 1h-Middle, and the SMA 5-4h.
Further above, the next cap is at $1,575, which is the meeting point of the Fibonacci 23.6% one-day and the Fibonacci 38.2% one-month.
Support awaits at $1,557, which is the convergence of the SMA 200-4h and the previous yearly high.
Another noteworthy cushion is at $1,553, which is where the Fibonacci 61.8% one-month meets the price.
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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