Gold Price Analysis: Holding onto support at $1,625 is critical to moving higher – Confluence Detector

Yohay Elam FXStreet

Gold has closed the last full week of a turbulent March around $1,626. How is it positioned as further coronavirus news is set to rock markets in a new week?

The Technical Confluences Indicator is showing that significant support awaits at $1,625, which is the convergence of the Simple Moving Average 10-4h, the SMA 100-15m, the Bollinger Band 15min-Middle, the SMA 5-1h, and the Fibonacci 61.8% one-day.

The next cushion is at $1,619, which is the meeting point of the Fibonacci 23.6% one-day and the BB 1h-Lower.

Further down, $1,607 is the strongest support line. It is the confluence of the Fibonacci 23.6% one-week and the Pivot Point one-week one-day Support 2.

Looking up, $1,635 is the key resistance line. It is a juncture of lines including the BB 4h-Upper, the Fibonacci 61.8% one-week, the PP one-day R1.

The upside target is $1,645, which is where the previous week's high hits the price.

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.

Learn more about Technical Confluence

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.

GBP/USD retreats from multi-day highs around 1.3550

GBP/USD now gives away part of the earlier advance toward the 1.3550 region, or multi-week peaks, looking to consolidate around the 1.3530 region on Wednesday. Cable’s continuation of its march north follows the modest downside pressure on the Greenback after US CPI readings matched consensus in July.

EUR/USD eases from tops, back to 1.1550

EUR/USD now surrenders some gains and recedes toward the 1.1550 regio on Wednesday. Despite the knee-jerk, spot keeps the bid tone intact amid the offered stance in the US Dollar, all in the wake of in-line US inflation data in July. However, the fragile landscape in the Middle East is expected to put a floor to the occasional downward trend in the buck.

Gold challenges 10-week highs near $4,450

Gold now pushes harder and climbs to new two-month highs near $4,450 per troy ounce on Wednesday. The yellow metal’s solid performance comes on the back of a weaker US Dollar and declining US Treasuty yields across the curve as investors assess the latest US CPI data.

Ripple lags recovery as exchange reserves expand

Ripple is trading within a broadly constrained technical structure, with support at $1.00 and key moving averages limiting its recovery potential. In August, the remittance token declined by approximately 6.5%, extending its total pullback to around 14% from July's $1.18 peak.

911 million shares freed: Why SpaceX rallied into its own supply

The most heavily trailed supply event of the year landed on August 6, and the SpaceX (SPCX) stock went up. Roughly 911.5 million shares held by insiders and early backers became eligible to trade, around 43% more than the entire float sold at the listing.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.