Gold prices have fallen sharply amid a massive market panic, that pushed everything lower – including the normally safe-haven precious metal. How is XAU/USD as a mad week draws to an end?
The Technical Confluences Indicator is providing good news for gold bulls, with strong support at $1,581, which is the convergence of the Simple Moving Average 5-4h, the Fibonacci 23.6% one-day, and the Fibonacci 23.6% one-month.
The bad news is that robust resistance at $1,602, which is the meeting point of the Pivot Point one-week Support 1 and the Fibonacci 38.2% one-month.
The ugly development is that another cap awaits XAU/USD at $1,605, where we find the Simple Moving Average 200-4h hits the price.
Other clusters include $1,596 and $1,574.
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.
source from https://www.fxstreet.com/news/gold-price-analysis-the-good-bad-and-ugly-levels-to-watch-as-coronavirus-threatens-system-risk-202003130702