Gold Price Analysis: Well-supported and ready to rise ahead of the Fed – Confluence Detector

Gold has been holding onto some of its gains and now faces a big test – the Federal Reserve's rate decision. Can the precious metal continue higher? The technical positioning looks promising. 

The Technical Confluences Indicator is showing that XAU/USD is sitting above strong support at $1,709, which is the convergence of the Fibonacci 38.2% one-week, the Simple Moving Average 10-one-day, the SMA 5-1h, the Bollinger Band 15min-Middle, the SMA 50-1h, the SMA 200-15m, and more. 

Further down, another cluster awaits at $1,704, which includes the Pivot Point one-month Resistance 1, the previous monthly high, and the SAM 50-4h. 

Looking up, the initial target is $1,719, which is the confluence of the PP one-day Resistance 1 and the SMA 5 one-day. 

The upside target is $1,732, which is where the Fibonacci 161.8% one-day hits the price.

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.

Learn more about Technical Confluence