Gold Price Analysis: XAU/USD faces fierce resistance after NFP boost – Confluence Detector
|- Gold has been benefiting from falling Treasury yields in the aftermath of the Nonfarm Payrolls.
- The Confluence Detector shows that XAU/USD faces two critical resistance lines ahead of $1,800.
- Gold suffered in June – Will it rebound in 2021?
An attack on $1,800? Not so fast, as technical hurdles await XAU/USD. Gold has been one of the beneficiaries from America's only moderately satisfactory Nonfarm Payrolls report. While America gained 850,000 jobs in June, wage growth remained low and revisions added a meager 15,000 positions. That has sent returns on Treasuries lower, making yieldless gold more attractive.
However, after the initial rush, the precious metal's price hit technical barriers. Here is how XAU/USD is positioned.
The Technical Confluences Detector is showing that gold is facing resistance at $1,783, which is the convergence of the previous daily high and the Fibonacci 38.2% one week.
The second hurdle awaits at $1,790, which is the meeting point of the Fibonacci 23.6% one-month and the 100-day Simple Moving Average.
Immediate support awaits at $1,780, which is the confluence of the Bollinger Band 1h-Middle and the previous 4h-low.
It is followed by $1,775, which is where the Fibonacci 61.8% one-week and the SMA 10-one-day converge.
XAU/USD resistance and support levels
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.
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