Gold Price Analysis: XAU/USD corrective pullback eyes $1,845, $1,858 resistances – Confluence Detector
Gold prices keep bounce off the fresh low since December 01, marked earlier in Asia, while picking up the bids around $1,837, up 0.74% intraday, during the pre-European session trading on Monday. The yellow metal initially had to respect the US dollar’s run-up before bouncing off the key support.
Off in the US and a light calendar in Asia, except for China’s mixed activity numbers, restrict the bullion’s moves while challenges for the US President-elect Joe Biden and company join the coronavirus (COVID-19) worries to heavy the risks.
Gold: Key levels to watch
Gold battles $1,836/37 resistance area comprising 38.2% Fibonacci retracement of one day move (1D) and SMA 10 on the four-hour move.
In doing so, gold buyers eye SMA 200, 61.8% Fibonacci retracement SMA 5 on one day chart, currently around $1,845. However, bulls will remain cautious unless breaking the previous high on the 1D and upper band of the Bollinger near $1,858.
Meanwhile, previous high on hourly chart (1H), SMA 50 on 15-minute (15M) and middle Bollinger on the 15M can offer immediate support around $1,826.
Should gold sellers dominate past-$1,826, the previous week’s low and lower band of the Bollinger on 1D and first support of Pivot Point on monthly chart will be the key to follow around $1,817/16.
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About Confluence Detector
The TCI (Technical Confluences Indicator) 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
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
