Gold Price Analysis: Eyeing $1,521, then $1,535 after Fed announced open-ended QE – Confluence Detector

Gold has recaptured the $1,500 level after the Federal Reserve announced an open-ended Quantitative Easing program – flooding markets with cash, as much as needed. What are the next targets for XAU/USD?

The Technical Confluences Indicator is showing that Gold's initial upside target is $1,521, which is the convergence of the Fibonacci 61.8% one-week and the Pivot Point one-month Support 1. 

Further above, the most significant cap is $1,535, which is the meeting point of the 100-day Simple Moving Average and the SMA 200-1h. 

Some support awaits at $1,516, which is the confluence of the previous daily low and the Bollinger Band 4h-Upper. 

Strong support awaits at $1,503, which is where the 200-day SMA and the Fibonacci 23.6% one-day 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