- July 8, 2020
- Posted by: Trading
- Category: News
Gold has finally broken above $1,800 and continues its gradual journey higher, buoyed by central banks and coronavirus concerns. How is XAU/USD positioned on the technical charts?
The Technical Confluences Indicator is showing that the next upside target is $1,806, which is where the Pivot Point one-week Resistance 2 hits the price. Soft resistance is at $1,812, which is where the PP one-day awaits.
The next targets are more significant and are also marked by pivot points. The powerful PP one-month R1 awaits at $1,821, and it is followed by the PP one-week R3 at $1,823.
Some support is tat $1,797, which is the convergence of the previous daily high, the Simple Moving Average 5-1h, and the Bollinger Band 15min-Middle.
The next cushion is at $1,789, which is the confluence of the SMA 10-4h, the previous weekly high, the Fibonacci 38.2% one-day, and the SMA 5-1h.
Here is how it looks on the tool:
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.