Gold Price Analysis: XAU/USD has a lower ceiling to break – Confluence Detector

Gold has been finding its feet after the blow from the Federal Reserve. The world’s most powerful central bank did not provide additional stimulus, disappointing markets that expected more bond-buying. Without additional funds, the precious metal retreated from the highs. 

While XAU/USD is lower, significant resistance is lower than it used to be. If a break occurs, gold may have more upside room to run. 

The Technical Confluences Indicator is showing that gold faces fierce resistance at around $1,943, which is the convergence of the Simple Moving Average 10-one-day, the SMA 50-15m, the Fibonacci 38.2% one-week, and the Fibonacci 38.2% one-month.

Further above, $1,952 is a soft line of resistance. It is where the SMA 100-15m and teh Fibonacci 23.6% one-week converge. 

The high target is $1,966, which is the confluence of the previous weekly high, the BB 1h-Upper, and the Fibonacci 38.2% oen-day. 

Support awaits at $1,938, which is the meeting point of the SMA 5-15m and the Piuvot Point one-day Support 2.

The next cushion is stronger. At $1,929, we see a juncture including 50-day SMA and the Fibonacci 61.8% oen-week.

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.

Learn more about Technical Confluence

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