Gold has finally broken above the previous 2020 peak and trades at the highest levels in over seven years. How is the precious metal positioned for the next moves? XAU/USD has robust support and already eyes the next target.
The Technical Confluences Indicator is showing that that gold has some support at $1,714, which is the convergence of the Bollinger Band 15min-Lower and the Pivot Points one-week Resistance 1.
It is followed by strong support at $1,704, which is a dense cluster of lines including the Simple Moving Average 100-15m, the Pivot Point one-month Resistance 1, and the previous month's high.
Some resistance at $1,723, which is the confluence of the previous daily high and the BB 15min-Upper.
The upside target is at $1,729, where we see the Bollinger Band one-day Upper and the BB 4h-Upper converge.
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.
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