Coronavirus news continues hogging the headlines as President Donald Trump addressed the press about the outbreak. Gold, the safe-haven asset, has stabilized after a massive rally. What are the technical levels to watch in XAU/USD?
The Technical Confluences Indicator is showing that $1,652 is the immediate resistance line. It is the convergence of the Bollinger Band one-day Upper, the previous daily high and the Pivot Point one-day Resistance 1, and the BB 4h-Middle.
Looking up, the next upside target is $1,666, where the Pivot Point one-month Resistance 2 meets the price, and it is closely followed by $1,669, where the PP 1d-R2 and PP 1w-R1 meet up.
Gold is struggling with $1,650, which is a juncture including the previous weekly high, the Simple Moving Average 5-1h, and the SMA 10-15m.
Further support awaits at $1,645, which is the confluence of the SMA 50-1h, the SMA 50-15m, the BB 15min-Lower, the SMA 5-4h, and the SMA 10-4h.
Further down, low support awaits at $1,632, which is where the Fibonacci 23.6% one-week and the BB 1h-Lower 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
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