Gold Price Analysis: XAU/USD remains vulnerable, two key supports to watch – Confluence Detector
Gold continues to feel the pull of gravity after facing rejection at $1818 for two consecutive days. Despite the uncertainty about the coronavirus vaccine development and continued escalation in the infections globally, gold remains vulnerable amid thin trading conditions on Black Friday/
Expectations that the coronavirus vaccines will prompt a swifter global economic recovery in 2021 continue to bode ill for the anti-risk gold. Let’s see how gold is positioned on the charts.
Gold: Key resistances and supports
The Technical Confluences Indicator shows that the XAU/USD pair is likely to find an immediate reprieve at $1805, which is the confluence of the Pivot Point one-week S3 and the previous day low.
The next critical cushion awaits at $1800, where the SMA200 one-day coincides with the Bollinger Band one-day Lower.
The bears will then challenge the $1796 cap, the intersection of the Fibonacci 161.8% one-day and Bollinger Band four-hour Lower.
Further south, the level to beat for the bears is the Pivot Point one-day S3 at $1789.
On the flip side, strong resistance awaits at $1811, which is the convergence of the Fibonacci 61.8% one-day, SMA10 four-hour and SMA50 one-hour.
The $1818 barrier (Pivot Point one-month S2) will guard the further upside. Acceptance above the latter is critical to reviving the recovery momentum towards $1824, the meeting point of the Pivot Point one-day R2 and SMA100 one-hour.
Here is how it looks on the tool
About Confluence Detector
The TCI (Technical Confluences Indicator) 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
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
