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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.18 amid risk-off mood, US data eyed

EUR/USD is trading around 1.18, down on the day as the US dollar benefits from the risk-off mood. Worries about covid, China's techlash and tensions ahead of the Fed are weighing on sentiment. US Durable Goods Orders are eyed.

EUR/USD News

GBP/USD retreats from 1.38 as the dollar gains ground

GBP/USD is trading below 1.38, as the safe-haven dollar gains ground across the board. Earlier, the pound benefited from the drop in British covid cases. Durable Goods Orders are eyed.

GBP/USD News

Gold slips below $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Dogecoin to retest critical support before overcoming doubt

Dogecoin price thrilled investors after posting a 17% surge on July 26. Following the swing high, DOGE has wiped out most of those gains as it retraces.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures