OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold Price Analysis: Eyeing $1,612, $1,620 as next bullish levels amid coronavirus fears – Confluence Detector

Coronavirus fears continue underpinning gold prices. While China has announced measures to help the economy, fears of growing economic damage, XAU/USD is holding onto gains above $1,600. What are the next levels to watch?

The Technical Confluences Indicator is showing that significant resistance awaits at $1,612, which is the convergence of the multi-year high, the Pivot Point one-day Resistance 1, the PP one-week R3, and the Bollinger Band 1h-Upper. 

Further above, the upside target is $1,620, which is where the Pivot Point one-day Resistance 2 hits the price.

Looking down, substantial support is at $1,599, which is the confluence of the Fibonacci 23.6% one-day, the previous 4h-low, the Simple Moving Average 5-4h, the PP one-week R2, and more.

Further down, a considerable cushion awaits gold prices at $1,594, which is a juncture including the Fibonacci 61.8% one-day, the PP one-week R1, the SMA 5-1h, and the Fibonacci 23.6% one-month. 

Here is how it looks on the tool:

Gold prices technical confluence levels February 19 2020.png

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

US Dollar Index looks for direction near 99.50 ahead of FOMC, data

The greenback, when measured by the US Dollar Index (DXY), is struggling for direction near 99.50 following the Asian trading session on Wednesday. US
Read more Previous

Forex Today: Coronavirus fears subside, Gold holds to $1,600, EUR/USD wrecked, Fed Minutes awaited

Here is what you need to know on Wednesday, February 19: Coronavirus: The respiratory disease has already taken the lives of over 2,000 people includi
Read more Next
Start livechat