Gold Price Analysis: XAU/USD needs to crack $1,878 to unleash the upside – Confluence Detector
|
Gold has been looking for a new direction after two vaccine efforts published promising results, reducing the need for additional fiscal stimulus. On the other hand, central banks remained cautious and have opened the door to providing monetary relief. The precious metal´s latest moves were mostly triggered by speculation about further funds.
In the meantime, what are XAU/USD charts telling traders?
The Technical Confluences Indicator is showing that critical resistance awaits at $1,878, which is the convergence of the Fibonacci 23.6% one-month and the Fibonacci 23.6% one-week.
Beyond that cap, the next substantial hurdle is at $1,891, which is the meeting point between the Pivot Point one-day Resistance 1 and the Simple Moving Average 50-4h.
Some support awaits at $1,874, which is a cluster including the Bollinger Band 15min-Lower, the BB 4h-Lower, the BB 1h-Lowe, and the PP one-day Support 1.
The next cushion is $1,860, which is the meeting point of the previous month's low and the PP one-day Support 3.
Key XAU/USD resistances and supports
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.