Safe-haven US dollar is back in demand on Thursday amid fading hopes of a US fiscal deal and election interference risk. The market mood soured after top American intelligence officials warned that Iran and Russia could be trying to disrupt the upcoming Presidential election.
Meanwhile, President Donald Trump’s accusations of the Democrats unwilling to reach an agreement on the multi-trillion-dollar fiscal aid raised doubts over the further stimulus talks. Amid jittery markets, the dollar stands tall, although technically the XAU bulls still insist, keeping the sentiment buoyed around gold.
Gold: Key resistances and supports
The Technical Confluences Indicator shows that a bunch of healthy resistance and support levels are stacked up for the bright metal. However, the path of minimum resistance appears to the upside.
The XAU bulls march towards the next significant resistance at $1920, the confluence of the SMA5 four-hour and SMA100 15-minutes.
A break above the latter would expose the Fibonacci 23.6% one-day level placed at $1925. If the price surges past that level, $1928 (pivot point one-week R1) will offer immediate resistance.
Further north, the Fibonacci 61.8% one-month at $1938 is the level to beat for the bulls.
Alternatively, a dense cluster of supports around $1909 continues to guard the downside. That level is the convergence of the pivot point one-day S1, SMA200 one-hour and SMA50 four-hour.
The next downside target is set at $1904, the Fibonacci 38.2% one-month, acceptance below which could trigger a drop towards the $1896 support zone. At that level, the Fibonacci 23.6% one-week and Bollinger Band four-hour Lower coincide.
Here is how it looks on the tool
About 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.