Gold Price Analysis: Holding onto $1,627 key to next bullish run to $1,656 – Confluence Detector
Another week of coronavirus scare has sent Gold prices to a new seven-year high at $1,649. What are the next targets for XAU/USD?
The Technical Confluences Indicator is showing at the first upside target is $1,649, the recent high and also the convergence of the Bollinger Band 4h-Upper and the BB 1h-Upper.
Further above, $1,656 is the next target. IT is where the Pivot Point one-day Resistance 1 hits the prices.
Some support awaits the yellow metal at $1,642, which is the confluence of the Fibonacci 23.6% one-day and the Simple Moving Average 10-1h.
Further down, $1,633 is the meeting point of the Fibonacci 23.6% one-week, the SMA 10-4h, and the Fibonacci 61.8% one-day.
Critical support awaits XAU/USD at $1,627, which is a juncture including the PP one-month R1, the BB one-day Upper, and the PP one-day S1.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
