Gold Price Analysis: The good, bad and ugly levels to watch as coronavirus threatens system risk
|Gold prices have fallen sharply amid a massive market panic, that pushed everything lower – including the normally safe-haven precious metal. How is XAU/USD as a mad week draws to an end?
The Technical Confluences Indicator is providing good news for gold bulls, with strong support at $1,581, which is the convergence of the Simple Moving Average 5-4h, the Fibonacci 23.6% one-day, and the Fibonacci 23.6% one-month.
The bad news is that robust resistance at $1,602, which is the meeting point of the Pivot Point one-week Support 1 and the Fibonacci 38.2% one-month.
The ugly development is that another cap awaits XAU/USD at $1,605, where we find the Simple Moving Average 200-4h hits the price.
Other clusters include $1,596 and $1,574.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.