Gold Price Forecast: XAU/USD needs to recapture $1576 for a bull run – Confluence Detector
Gold prices have been stabilizing as the global markets are digesting the recent coronavirus news amid other risk factors. How is XAU/USD positioned?
The Technical Confluences Indicator is showing that Gold is capped at $1,576, which is the convergence of the Fibonacci 38.2% one-month, the Pivot Point one-day Resistance 1, and the previous 4h-high.
If it breaks above that level, the next resistance line is only at $1,594, which is the meeting point of the Fibonacci 23.6% one-month and the Pivot Point one-day Resistance 3.
Significant support awaits at $1,571, which is the confluence of the previous 4h-low, the Fibonacci 23.6% one-day, and the Simple Moving Average 50-4h.
Further down, the next cushion awaits at $1,565, which is a juncture of lines including the BB one-day Middle, the BB 4h-Middle, the SMA 5-one-day, and the Fibonacci 38.2% one-week.
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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