Gold Price Analysis: XAU/USD path of least resistance is down – Confluence Detector

 Gold prices have suffered a sell-off as April drew to a close and as money managers adjusted their portfolios. How is the precious metal positioned on the charts?

The Technical Confluences Indicator is showing that XAU/USD faces resistance at $1691, which is the convergence of the Fibonacci 61.8% one-week, the Fibonacci 23.6% one-day, the Bollinger Band one-day Middle, the BB 15min-Upper, and more.

Further above, the next cap awaits at $1,705, which is the meeting point of the BB 4h-Middle and the Fibonacci 23.6% one-month. 

Next, up, $1,710 is the next hurdle – the place where the Simple Moving Average 50-4h and the Fibonacci 38.2% one-week.

Looking down, some support awaits at $1,679, which is the confluence of the Fibonacci 38.2% one-month and the Pivot Point one-week Support 1.

Lower, the next cushion is at $1,667, where the PP one-day S1 and the BB 1h-Lower 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.

Learn more about Technical Confluence