Gold prices have suffered a meltdown late in the week, as high volatility in markets triggered a rush to the US dollar, depleting demand out of the precious metal. After XAU/USD closed the week around $1,530, up from the lows, after President Donald Trump declared an emergency over the coronavirus crisis. What are the levels to watch?
The Technical Confluences Indicator is showing that the most significant line of resistance is $1,548, which is the convergence of the previous monthly low and the Bollinger Band one-day Lower.
Beforehand, XAU/USD faces resistance at around $1,533, which is the previous daily high, followed by $1,535, where the 100-day Simple Moving Average meets the Bollinger Band 15min-Upper.
Next, $1,540 is where the Fibonacci 38.2% one-day hits the chart.
Looking down, some support awaits at $1,527, which is where the Fibonacci 23.6% one-day and the Simple Moving Average 5-15m meet.
Critical support awaits at $1,521, where the Pivot Point one-month Support 1, the SMA 5-1h, the SMA 10-15m, and the BB 15min-Middle 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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