Gold Price Analysis: XAU bulls await the US Retail Sales for fresh impetus – Confluence Detector
|Gold consolidates Wednesday’s volatile trading above the $1800 mark, as the further upside appears an uphill task for the bulls ahead of the critical US Retail Sales release.
According to the Technical Confluences Indicator, the bright metal needs a decisive break above the strong resistance at $1811 to extend the recent bullish momentum. That level is the confluence of the Bollinger Band one-hour Middle, SMA10 4H and SMA100 15-minutes.
The bulls will then look to the next barrier at $1815.50, the intersection of the previous day high and Bollinger Band four-hour Upper.
Further north, the previous week/ multi-year highs at $1818.17 will confront the buyers. A break above which will call for a test of the critical hurdle at $1821, the pivot point one-month R1.
To the downside, the bears continue to guard the $1807/1806.50 levels, where the Fibonacci 23.6% one-week, Fibonacci 61.8% one-day and SMA50 one-hour meet.
Further south, minor support at $1805, the convergence of the SMA5 one-day and SMA100 one-hour, could limit the declines.
The downside target at $1800 (SMA200 one-hour/ Fibonacci 38.2% one-week) will act as powerful support.
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.