Gold Price Analysis: XAU/USD well-positioned on stimulus deadline day – Confluence Detector
Can Democrats and Republicans strike a deal on multi-trillion fiscal stimulus two weeks ahead of the elections? Gold bulls would be thankful for more funds from Uncle Sam. Given the antagonism between the parties and the proximity of the vote, the chances seem slim, yet comments from President Donald Trump and House Speaker Nancy Pelosi seem upbeat.
Pelosi set Tuesday as a deadline to reach a deal, and perhaps that could bring both sides over the line. How is XAU/USD positioned on the charts?
How is XAU/USD positioned on the charts?
The Technical Confluences Indicator is showing that gold is trading just around a cluster of lines at $1,901, which includes the Simple Moving Average 100-4h, the Bollinger Band 15min-Lower, the Fibonacci 38.2% one-week, and the SMA 10-one-day.
If it holds up, the initial target is $1,909, where the Fibonacci 38.2% one-day and the BB 15min-Upper converge.
Further above, $1,913 is the confluence of the SMA 200-4h, the BB 4h-Upper, and the Fibonacci 38.2% one-day.
Support awaits at $1,895, which is the convergence of the Fibonacci 23.6% one-week, the BB 4h-Lower, the Pivot Point one-day Support 1, and the BB one-day Middle.
Lower, an additional cushion awaits at $1,883, which is a juncture of lines including the previous weekly low and the Fibonacci 23.6% one-month.
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.
