Gold Price Analysis: Eyeing two upside targets as a busy week draws to an end – Confluence Detector
Gold has been extending its recovery in a relatively quiet fashion after a turbulent week that saw a surge before a drop. XAU/USD has shown its resilience to the most recent rise in US bond yields, providing encouragement for the bulls.
The Technical Confluences Indicator is showing that gold has substantial support at $1,932, which is the meeting point of two powerful Fibonacci lines, the 23.6% one-month and the 61.8% one-day.
Another defense line awaits at $1,946, which is the convergence of the Bollinger Band one-day Middle, the Fibonacci 38.2% one-day, the BB 15min-Lower, and more.
Looking up, the first upside target is $1,961, which is the confluence of the previous weekly low and the BB 1h-Upper.
Further above, $1,972 is a juncture of levels including the Simple Moving Average 100-4h, the Pivot Point one-week Support 1
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
