Gold (XAU/USD) is easing off three-month highs, as the bulls face a hurdle at the technical resistance near the $1798-$1799 zone. Broad-based US dollar bounce amid a risk-off mood and upbeat comments from Fed Chair Powell weigh on gold. Although the XAU bulls remain hopeful amid subdued Treasury yields. Gold traders look forward to the US ISM-NY Business Conditions and Factory Orders after the ISM Manufacturing data disappointed markets.
How is gold positioned on the technical graphs?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold is facing minor resistance around the $1793-$1795 region, which is the convergence of the previous high four-hour and Fibonacci 23.6% one-day.
The XAU buyers need to find a strong foothold above $1798, the confluence of the SMA100 one-day, previous month highs and the previous day high, in order to extend the resurgent demand.
The next stop for the bulls is seen at the pivot point one-week S2 at $1806.
Further north, the pivot point one-month R1 at $1810 will be on the buyers’ radars.
On the flip side, strong support awaits $1787, where the SMA5 four-hour coincides with the pivot point one-week R1.
The intersection of the SMA200 one-hour, Fibonacci 61.8% one-day and SMA5 one-day at $1780 could limit the declines.
Meanwhile, the confluence of the Fibonacci 61.8% one-week, Fibonacci 23.6% one-month and SMA100 one-hour at $1776 could likely be the level to beat for the XAU bears.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) 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.
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