Gold Price Analysis: Still not out of the woods with $1,709 looming above – Confluence Detector
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Gold Price Analysis: Still not out of the woods with $1,709 looming above – Confluence Detector

The price of gold has been under pressure, falling off the $1,700 mark. The precious metal has failed to rise amid the stock market’s mood swings. How is it technically positioned?

The Technical Confluences Indicator is showing that XAU/USD is initially capped at around $1,700, which is the convergence of the Simple Moving Average 100-1h, the SMA 5-4h, and the Bollinger Band one-day Middle. 

The next level to watch is $1,705, which is the meeting point of the Fibonacci 38.2% one-day and the Fibonacci 23.6% one-month.

Strong resistance is at $1,709, which is a dense cluster including the BB one-hour Upper, the SMA 10-one-day, the Fibonacci 23.6% one-day, the SMA 200-1h, and the previous 4h-high. 

Looking down, some support awaits at $1,692, which is the confluence of the Pivot Point one-day Support 1, and the previous daily low, and the Fibonacci 38.2% one-week. 

The downside target is $1,680, which is where the Fibonacci 38.2% one-week and the Fibonacci 161.8% one-day 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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