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Gold has been recovering from the recent downside correction and has recaptured $1,730. How is the precious metal positioned on the chart? 

The Technical Confluences Indicator is showing that XAU/USD is eying $1,742 as the next upside target. That level is the convergence of the Pivot Point one-day Resistance, the PP one-week R2, and the Bollinger Band 4h-Upper. 

Support awaits at $1,1718, which is the meeting point of the BB 1h-Middle, the Simple Moving Average 5-4h, the BB 15min-Lower, and the SMA 100-15m.

Further down, support awaits at $1,714, which is the confluence of the Fibonacci 23.6% one-day, the PP one-week R1, and the previous 4h-low. 

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