Gold continues “hugging” the round $1,700 level as markets are looking for a new direction amid horrible economic figures and uncertainty about the next moves to curb coronavirus. How is XAU/USD positioned?
The Technical Confluences Indicator is showing that resistance awaits at $1,703, which is the convergence of the Simple Moving Average 100-1h, the SMA 10-one-day, the SMA 100–4h, and the Bollinger Band 1h-Lower.
Further up, the strong resistance is at $1,708, which is the meeting points of the BB one-day Middle, the previous 4h-high, and the all-important Fibonacci 38.2% one-week.
If gold overcomes these levels, the upside target is $1,724, which is a juncture including the Pivot Point one-week Resistance 1 and the previous daily high.
Looking down, some support awaits at $1,698, which is where the Fibonacci 61.8% one-week hits the price.
The downside target is $1,682, which is the confluence of the Pivot Point one-week Support 1 and the previous weekly low.
Here is how it looks on the tool:
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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