XAU/USD needs to top $1,792 to regain bullish bias– Confluence Detector
Where next after the downfall? US stock markets have been making an attempt to recover and seem gripped between fears that the Fed would taper its bond-buying scheme and coronavirus. The Delta COVID-19 variant continues raging through the US and while it is dampening the mood for markets, it could push gold higher.
The precious metal needs the Fed to keep on printing dollars and delay the potential reduction of its purchase program. The bank currently creates $120 billion every month. In the meantime, technicals have their say.
How is XAU/USD positioned on the charts?
The Technical Confluences Detector is showing that gold still needs to break above $1,783, which is a dense cluster of indicators, including the 100-4h Simple Moving Average, the SMA 200-15m, the Bollinger Band 15min-Middle and the Fibonacci 61.8% one-day to name a few.
It is followed by $1,792 mentioned earlier, which is the convergence of the Fibonacci 61.8% one-month, the previous daily high and the BB 4h-Upper.
The upside target for gold bulls is $1,805, which is where the Fibonacci 161.8% one-day hits the price.
Looking down, some support awaits at $1,775, which is the confluence of the Pivot Point one-month Support 1 and the previous daily low.
It is followed by $1,766, which is where the previous month’s trough and the 10-day SMA hit the price together.
XAU/USD resistance and support levels
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.
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