Gold Price Analysis: XAU/USD has strong support, high target is $1,835 – Confluence Detector
|- Gold has been extending its gains in the aftermath of Powell's dovish speech.
- The Confluence Detector is showing XAU/USD has solid support and clear levels to the upside.
- Gold Weekly Forecast: XAU/USD could target $1,830 next ahead of NFP
Fresh fuel from the Federal Reserve has been making gold shine – the familiar story has repeated itself in recent days, allowing the precious metal to feel comfortable above $1,800. There might be more in store.
Fed Chair Jerome Powell refrained from signaling he would announce a tapering of the bank's $120 billion/month bond-buying scheme in a highly anticipated speech on Friday. If the world's most powerful central bank keeps increasing the money supply, some of that goes to gold, goes the thinking.
The next significant event awaiting markets is Nonfarm Payrolls on Friday. Until then, how is XAU/USD positioned on the charts?
The Technical Confluences Detector is showing that gold has substantial support at $1,804, which is the confluence of the Simple Moving Average 200-15m, the SMA 50-1h and the Fibonacci 38.2% one-week.
Another considerable cushion is $1,792, which is a cluster including the 10-day SMA, the Fibonacci 61.8% one-week and more.
Gold bulls eye $1,818 as their first target. That is where the Bollinger Band 15min-Upper and the Fibonacci 23.6% one-month meet up.
The upside target is $1,835, which is where the previous month's peak and the BB one-day Upper converge.
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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