Gold Price Analysis: XAU/USD path of least resistance remains down – Confluence Detector
|Gold has been rocking and rolling, seemingly stabilizing on lower ground. The precious metal's price has been hit hard by the dramatic news that Pfizer and BioNTech have made significant progress with a COVID-19 vaccine – 90% efficacy according to preliminary results. Immunization for the illness that has been gripping the world makes fiscal and monetary stimulus unnecessary.
Can XAU/USD recover? Its position on the charts looks unfavorable.
The Technical Confluences Indicator is showing that gold has some support at $1,860, which is the convergence of the previous monthly low and the Bollinger Band 15min-Lower.
It is closely followed by $1,856, which is the meeting point of the Pivot Point one-day Support 1 and the previous day's low.
Another cushion awaits at $1,849, which is where the PP one-month Support 1 hits the price.
While gold has three noteworthy support lines, resistance lines are stronger. The first cap is $1,874, which is a confluence of the previous week's low and the Simple Moving Average 10-1h.
Fierce resistance is at $1,878, which is a juncture including the Fibonacci 23.6% one-month, the SMA 200-15m, the Fibonacci 38.2% one-day, and the SMA 100-15m.
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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