Gold Price Analysis: XAU/USD smashing resistance after Powell, levels to watch – Confluence Detector
|Gold is on the rise after Jerome Powell, Chairman of the Federal Reserve, announced a major paradigm shift that prioritizes employment over inflation – indicating lower rates and beneficial for the precious metal.
What are the levels to watch on XAU/USD?
The Technical Confluences Indicator is showing that gold surpassed two critical resistance lines that now turn into support. The first is $1,951, which is the convergence of the Fibonacci 38.2% one-week, the Simple Moving Average 10-one-day, and the SMA 50-4h.
The second is $1,956, which is the meeting point of the Bollinger Band 1h-Upper and the BB 4h-Upper.
XAU/USD bulls may now look up and target $1,972, which is the confluence of the BB one-day Middle and the Pivot Point one-day Resistance 1.
Further above, $1,976 is where the Fibonacci 61.8% one-week hits the price.
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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