The Federal Reserve´s pledge to act in the wake of the coronavirus outbreak helped stabilize markets and depress gold prices. This trend may now be reversing as share prices are struggling to gain ground.
The Technical Confluences Indicator is showing that XAU/USD faces tough resistance at $1,603, which is the convergence of the Fibonacci 38.2% one-month and the Simple Moving Average 50-15m.
It is closely followed by $1,605, which is where the meeting point of the SMA 100-4h and the SMA 5-1h.
Some support awaits at $1,593, which is the confluence of the previous 1h-low and the Fibonacci 23.6% one-week.
Further down, the next cushion is at $1,581, which is where the Fibonacci 23.6% one-month hits the price.
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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