Gold Price Analysis: XAU/USD bulls target $1,775 as next recovery goal – Confluence Detector
- Gold has been recovering amid end-of-quarter flows.
- The Confluence Detector shows that XAU/USD is eyeing $1,775 as the next target.
- Gold prices pull back ahead of key US jobs data: What’s next? [Video]
It is the end of the month – and the quarter – and money managers are rushing to adjust their portfolios, unwinding some of the recent market moves. For gold, that means reversing Tuesday's fall to the lowest levels since April. That drop was attributed to new Basel III regulations and also to the Fed's hawkish policy.
How high can XAU/USD go?
The Technical Confluences Detector is showing that gold is battling $1,766.50, a price where the Simple Moving Average 10-4h and the previous monthly low converge.
Critical resistance awaits the precious metal at $1,775, which is the meeting point of the 5-day SMA and the all-important Fibonacci 61.8% one week.
Immediate support awaits XAU/USD at $1,764, which is the confluence of the previous week's low and the Fibonacci 38.2% one day.
Further down, another cushion is $1,749, which is a juncture including the Pivot Point one-day Support 1 and the PP one-week S2.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
