Gold Price Analysis: XAU/USD bears eyeing $1,871 as downside target – Confluence Detector


Gold is falling alongside stocks as the market mood sours. Rising coronavirus cases in Europe and the US is weighing on the mood, as well as uncertainty about the elections. The chances of a "blue wave" – a massive Democratic victory – that would ensure massive stimulus seems less certain as investors get nervous ahead of the vote. 

See Gold Price Analysis: XAU/USD has three ways go in response to the 2020 Presidential Elections

In the meantime, how are technicals looking for XAU/USD? Bears seem to have the upper hand. 

The Technical Confluences Indicator is showing that significant resistance awaits gold at $1,904, which is the convergence of the Bollinger Band 4h-Middle, the BB one-day Middle, the Simple Moving Average 10-1h, the SMA 5-4h, and the Fibonacci 38.2% one-month. 

An even stronger cap awaits XAU/USD at $1,909, which is the meeting point of the Fibonacci 23.6% one-day and the Fibonacci 61.8% one-week. 

Some support awaits at $1,886, which is the confluence of the Pivot Point one-week Support 1 and the PP one-day S3. 

The downside target is $1,871, which is a juncture including the Fibonacci 161.8% one-week and the PP one-week S2.

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.

Learn more about Technical Confluence

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 

EUR/USD News

GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.

GBP/USD News

XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures