Gold has been on the rise as investors are concerned about the surge in coronavirus cases in the US Sun Belt. Will it resume its attack on $1,800? It may take more time, as technicals are pointing to further losses.

The Technical Confluences Indicator is showing that XAU/USD faces fierce resistance around $1,765, which is an area including many lines. The region consists of Simple Moving Average 5-4h, the SMA 100-15m, the Bollinger Band one-day Upper, the Fibonacci 38.2% one-day, the previous monthly high, the BB 15min-Upper, and the BB 1h-Middle.

Further above, $1,773 is a critical cap, where the Pivot Point one-week Resistance 2, the PP one-month R1, and the Fibonacci 61.8% one-day converge.

Support awaits at $1,758, which is the confluence of the PP one-week R1, the previous 4h-low, and more.

The downside target is $1,743, which is the meeting point of the BB 4h-Lower and the Fibonacci 23.6% one-week.

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