Gold Price Analysis: XAU/USD battle lines drawn ahead of stimulus talks – Confluence Detector
|Former President Donald Trump's trial is over and while political commentators delve into the implications, for markets it only means that the Senate's agenda is now focused on one thing – stimulus. President Joe Biden is set to push through a covid relief bill worth as much as $1.9 trillion. Will that push gold higher or rather jolt US bond yields to fresh highs and weigh on the precious metal?
In any case, XAU/USD is preparing for a new battle. Here are the levels to watch.
The Technical Confluences Indicator is showing that gold is capped at around $1,821, which is the convergence of the Simple Moving Average 10-1h, the Bollinger Band 15min-Middle, the SMA 100-15m, the BB 1h-Middle, and many additional lines.
Further above, the upside target is $1,842, which is a juncture of lines including the BB one-day Middle and the Fibonacci 23.6% one-month.
Some support awaits at $1,804, which is the confluence of the previous month's low and the BB one-day Lower.
XAU/USD may target $1,780, which is the meeting point of the Fibonacci 161.8% one-week and the PP one-month S1.
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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