Gold Price Analysis: XAU/USD bulls eye $1,777 as next target – Confluence Detector
|- XAU/USD has been recovering as dip buyers seize on the yields-related fall..
- The Confluence Detector is showing gold has significant resistance only at $1,777.
- Gold Price Forecast: Defending $1720 is critical for XAU/USD bulls, as focus shifts to US data
When markets dip, buyers appear – that has been the logic for stocks for many years, and now it appears to become relevant for gold. The precious metal tumbled as yields soared in response to the Federal Reserve's signal of tapering its bond-buying scheme. However, end-of-quarter flows resulted in a quick recovery,
How is XAU/USD technically positioned after these erratic moves?
The Technical Confluences Detector is showing that the yellow metal faces some resistance at $1,757, which is the convergence of the Fibonacci 38.2% one week and the Bollinger Band 4h-Upper.
The critical cap is at $1,777, which is where the Fibonacci 61.8% one-month and the BB one-day Middle meet up.
Some support awaits at $1,742, which is the confluence of the Fibonacci 38.2% one-month and the previous 1h-high.
Further down, $1,737 is a juncture of lines including the previous weekly low and the Fibonacci 61.8% one day.
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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