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.
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.
