Gold Price Analysis: XAU/USD eyes $1,969 as next upside target – Confluence Detector
|Gold has been rising with the upbeat mood in markets. Investors are optimistic about a coronavirus vaccine – either coming from Pfizer or from AstraZeneca. The latter has renewed its Phase 3 immunization test after halting it last week when a patient fell ill.
The precious metal is moving in tandem with stocks – not serving as a safe-haven for now. Will the uptrend continue? The fundamental focus is on the Federal Reserve's decision later in the week, while technicals paint a favorable picture for XAU/USD.
The Technical Confluences Indicator is showing that gold has weak resistance at $1,963, which is the convergence of the Pivot Point one-day Resistance 2 and the Simple Moving Average 200-4h.
A critical cap awaits at $1,969, which is the meeting point of two pivot points – the one-day Resistance 3 and the one-week Resistance 1.
Looking down, strong support is at $1,945, where a dense cluster of lines awaits gold. The level includes the SMA 10-4h, the Fibonacci 38.2% one-month, the SMA 5-4h, the Bollinger Band 4h-Middle, and the BB 1h-Middle.
Further down, the next cushion is at $1,937, where the previous one-day low and the SMA 50-4h converge.
Key XAU/USD resistances and supports
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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