Gold Price Analysis: Battle lines well-mapped after FOMC minutes-led slump – Confluence Detector
Gold is trying hard to extend the bounce from Wednesday’s slide to $1925 region, as the US dollar clings onto the post-FOMC minutes gains despite the weakness in the Treasury yields.
The risk-averse market conditions amid doubts over the US economic recovery continue to offer support to the metal ahead of the US Jobless Claims data. How is gold positioned technically?
Gold: Key resistances and supports
The tool shows that gold is ranging below the powerful resistance around $1955, where the previous high and SMA5 on four-hour coincide.
Above that hurdle, the price could battle $1957, the convergence of the Fibonacci 61.8% one-day and Bollinger Band 15-minutes Upper.
Acceptance above the latter could trigger a fresh uptick to the next target at $1963, the SMA5 on one-day.
Further north, $1970 will be put to test, which is the confluence of the SMA100 one-hour and Bollinger Band one-day Middle.
To the downside, the immediate cushion is seen at the Fibonacci 23.6% one-day at $1944, below which the Fibonacci 38.2% one-week at $1935 will get tested.
The buyers could remain hopeful so long as it holds above the critical $1931 support, which is the Fibonacci 23.6% one-month.
Here is how it looks on the tool
About the Confluence Detector
The TCI (Technical Confluences Indicator) 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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
