Gold Price Forecast: XAUUSD needs to crack $1,842 to unleash further upside – Confluence Detector
|- Gold Price consolidates the Fed-led rebound amid an upbeat mood.
- Fed’s resolve to fight inflation calm nerves, 10-year yields tumble.
- Will XAUUSD find acceptance above critical resistance at $1,842?
Fed Chair Jerome Powell presented a 75 bps rate hike at its June monetary policy meeting, offering the much-needed comfort to the market. Longer-dated yields tumbled on the Fed’s resolve to fight inflation, knocking off the US dollar while helping Gold Price stage a solid comeback. Although sellers remained positioned at higher levels, as we head towards another central bank (BOE) day. On Wednesday, the ECB announced that it will apply flexibility in PEPP reinvestment at its unscheduled meeting.
Also read: The Fed does not want to induce a recession but is there any choice?
Gold Price: Key levels to watch
The Technical Confluence Detector shows that Gold Price is striving hard to recapture $1,836, which is the meeting point of the Fibonacci 23.6% one-day and Fibonacci 38.2% one-month.
Acceptance above the latter will trigger a fresh upswing towards the pivot point one-week S1 at $1,839.
The next strong resistance is aligned near $1,842, the confluence of the SMA200 one-day, the previous day’s high and the Fibonacci 38.2% one-day.
Further up, the convergence of the Fibonacci 61.8% one-week and the SMA10 one-day at $1,845 will challenge the bearish commitments, as bulls keep their sight on the pivot point one-day R1 at $1,849.
Alternatively, the Fibonacci 38.2% one-day at $1,828 offers immediate support, below which the previous week’s low of $1,825 will be in the picture.
The Fibonacci 61.8% one-day at $1,820 could rescue bulls if the downside pressure intensifies.
The line in the sand for gold buyers is pegged at $1,816, the Fibonacci 23.6% one-month.
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About Technical Confluences Detector
The TCD (Technical Confluences Detector) 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. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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