Gold has been extending its relentless rise, hitting a new near-year high of $1,880.11at the time of writing. Monetary and fiscal stimulus have both been driving the precious metal higher. What are the next levels to watch on XAU/USD?
The Technical Confluences Indicator is showing that the next hurdle for gold is at $1,883, which is where the Pivot Point one-day Resistance 1 hits the price.
It is followed by $1,893, which is where another pivot point is found – the one-day R2.
Further up, the all-time high of $1,921.50 is the next level to watch.
Immediate support i– and a battle line, s at $1,873, which is the confluence of the Simple Moving Average 10-15m and the previous daily high.
Strong support awaits at $1,861, which is a cluster of strong lines including the Fibonacci 38.2% one-day, the SMA 10-4h, the PP one-month R2, and more.
Further down, another cushion awaits at $1,853, which is where the Fibonacci 61.8% one-day and the SMA 50-1h 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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