Gold has been trading around $1,690 amid a worsening market mood. Can it extend its gains? XAU/USD faces robust resistance.
The Technical Confluences Indicator is facing initial resistance at $1,696, which is the convergence of the Fibonacci 23.6% one-week and the Simple Moving Average 50-4h.
Strong resistance awaits at $1,703, which is a dense cluster of lines including the previous monthly high, the SMA 100-1h, the Pivot Point one-month Resistance 1, and the Fibonacci 38.2% one-week.
Some support awaits at $1,691, which is the confluence of the SMA 5-15m, the Fibonacci 38.2% one-day, the SMA 10-1h, the Bollinger Band 1h-Middle, and more.
Further down, the next noteworthy cushion is at $1,680, where the previous weekly low and PP one-day S1 converge.
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.
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