Gold Price Analysis: Defending $1985/80 support is critical ahead of FOMC minutes – Confluence Detector
|Having faced rejection above $2000 once again, Gold turned south amid a pullback in the US dollar amid progress in the US fiscal stimulus. However, negative Treasury yields could impede the road to recovery for the greenback.
US-China tensions and jittery markets ahead of Wednesday’s FOMC minutes could save the day for the gold bulls. Let’s consider key technical levels for trading gold in the lead up to the key event risk – the Fed minutes.
Gold: Key resistances and supports
The tool shows that gold is holding well above the key $1985 support, the previous month high.
A break below which the next cushion at $1980, the convergence of the SMA200 one-hour and Fibonacci 61.8% one-week.
Further south, the intersection of the previous day low and SMA50 four-hour at $1976 will offer some respite to the bulls.
Sellers will then aim for the next downside target at $1967, Bollinger Band one-day Middle.
Alternatively, buyers battle the immediate resistance at $1991, the confluence of the Fibonacci 61.8% one-day and SMA10 15-minutes.
Acceptance above the latter will open doors for a test of $2000, where the Fibonacci 38.2% one-day and Bollinger Band 15-minutes Upper coincide
The next topside hurdle awaits at $1207, the convergence of the Fibonacci 23.6% one-day and previous high on four-hour.
Here is how it looks on the tool
About the 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.
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