Gold Price Analysis: XAU/USD battle lines drawn amid hopes for stimulus – Confluence Detector
Gold has been battling the $1,900 level as markets seem worried that Congress would not opt for a new stimulus bill. The precious metal needs new funds to hit new highs. The most recent headline is encouraging – President Donald Trump is willing to raise his offer to above $1.8 trillion.
Will House Democrats compromise from their demands for $2.2 trillion? Will Senate Republicans allow for more than their most recent offer of $500 billion?
These are open questions. How are technicals aligned?
The Technical Confluences Indicator is showing that XAUD/USD has support at $1,899, which is the convergence of the Bollinger Band one-day Middle, the Simple Moving Average 100-15m, and the BB 15min-Upper.
Further down, support is at $1,882, which is the confluence of the previous daily low and the Fibonacci 23.6% one-month.
Resistance is at $1,903, which is the meeting point of the previous 4h-high, the BB 1h-Upper, and the Fibonacci 38.2% one-month.
The next cap is $1,908, where the SMA 5-one-day and the Fibonacci 38.2% one-week converge.
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.
