Gold Price Analysis: Ready to attack $1,703 after Easter – Confluence Detector
The price of gold ended Good Friday at around $1,684, consolidating its gains as the effect of the Federal Reserve's latest $2.3 trillion loan schemes underpinned XAU/USD. How is the precious metal positioned ahead of the next week?
The Technical Confluences Indicator is showing that gold has an initial soft target of $1,690, which is the convergence of the previous day's high and the Bollinger Band 15min-Upper.
The upside target is $1,703, which is a dense cluster of technical levels, including the Pivot Point one-day Resistance 1, the PP one-month R1, and the highest level since 2013.
Noteworthy support awaits at $1,679, which is the meeting point of the Fibonacci 23.6% one-day and the BB 15min-Lower.
A considerable cushion awaits at $1,672, which is the confluence of the two potent Fibonacci levels – the 23.6% one-week and the 38.2% one-day.
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.
