Gold Price Analysis: XAU/USD bulls eye $1,741 as next target – Confluence Detector

Yohay Elam FXStreet

Gold has been drifting higher as the market mood improves and US Treasury yields play a more limited role in determining the market direction. The precious metal is able to shine while other commodities are under pressure – concerns of a slow exit from the covid crisis have resurfaced.

How is XAU/USD positioned on the charts?

The Technical Confluences Detector is showing that gold is well-supported at $1,724, which is the convergence of the Bollinger Band 1h-Lowe,r the BB one-day Middle, the previous 1h-Low, the Pivot Point one-week Support 1, and other lines.

Another cushion awaits the yellow metal at $1,715, which is the meeting point of the previous month's low and the PP one-day S1.

Immediate resistance awaits at $1,734, which is the confluence of the ten-day Simple Moving Average, the SMA 50-4h and the SMA 200-1h.

The upside target for XAU/USD bulls is $1,741, which is a juncture including the PP one-day Resistance 1 and the Fibonacci 38.2% one-day.

XAU/USD resistance and support levels

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

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.

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