Gold Price Analysis: XAU/USD looks north amid US political woes, Georgia’s Blue sweep – Confluence Detector
Gold (XAU/USD) attempts a bounce after Wednesday’s 2% slide, fuelled by the rally in US Treasury yields and stocks. Prospects of additional US stimulus amid a likely Blue sweep in the Senate revived the reflationary trades and drove the US rates sharply higher while Wall Street to fresh record highs.
Despite the sell-off in gold, the risks remain tilted to the upside amid expectations of more stimulus and growing US political tensions after the attack on Capitol Hill late Wednesday.
How is gold positioned technically?
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that gold lacks healthy resistance levels, making it an easy path for the bulls to extend the recovery momentum.
$1923 is the next relevant upside cap, which is the confluence of the pivot point one-week R2 and SMA5 one-day.
The gold buyers will then look to clear the $1926 (SMA100 one-hour) resistance on its journey towards $1937, which is the Fibonacci 61.8% one-day.
Further north, the intersection of the pivot point one-week R3 and Bollinger Band one-day Upper at 1942 could likely offer strong resistance.
Alternatively, immediate support is seen at $1915, which the Fibonacci 23.6% one-day. A break below which the sellers could probe the pivot point one-week R1 at $1910.
The previous month high at $1908 could challenge the bears’ commitment, as the next powerful support awaits at $1902, the confluence of the previous week high and the previous day low.
The convergence of the Fibonacci 23.6% one-week and SMA100 one-day at $1895 is the last resort for the XAU bulls.
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.
Learn more about Technical Confluence
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.