Gold Price Analysis: Decisive break above $1,663 critical to upside recovery – Confluence Detector
Gold is attempting recovery on Wednesday after Tuesday's market optimism sent the price of the precious metal lower. Can XAU/USD make another move on $1,700? A lot depends on coronavirus developments and on what governments do. How is XAU/USD positioned technically?
The Technical Confluences Indicator is showing that Gold faces a critical hurdle at $1,663, which is the convergence of the Simple Moving Average 10-15m, the Pivot Point one-month Resistance 1, and the Simple Moving Average 5 one-day.
Another minor cap awaits at $1,665, which is the meeting point of the SMA 50-1h, the previous 1h-high, the SMA 200-15m, and the Fibonacci 23.6% one-week.
If XAU/USD breaks above these levels, it has room to run, with $1,700 in its crosshairs.
Some support awaits at $1,657, which is the confluence of the SMA 50-15m, the Fibonacci 38.2% one-day, and the Bollinger Band 15min-Lower.
Strong support is at $1,647, which is where the Bollinger Band 1h-Lower meets 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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