Gold Price Analysis: XAU/USD eyes $1,779 as the next target – Confluence Detector
Gold has been on a roll – benefitting from the drop in returns on US government debt. The yieldless precious metal had been pressured amid competition from safe assets and can now shine again. Returns on the benchmark ten-year bonds dropped below the critical 1.60% and XAU/USD topped $1,760.
How is gold positioned on the technical charts?
The Technical Confluences Detector is showing that XAU/USD has little resistance on the way up, with the next high target being $1,779, which where the Pivot Point one-week Resistance 2 hits the price.
Initial support awaits at $1,763, which is the confluence of the Bollinger Band one-day Upper, the BB 15min-Upper, the PP one-day R3 and others.
It is followed by $1,760, which is the meeting point of the previous monthly high, the Simple Moving Average 5-15m and the PP one-week R1.
Further down, the next cushion is at $1,753, which is a juncture including the PP one-month R1, the 50-day Simple Moving Average and others.
All in all, the path of least resistance is to the upside.
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.
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.
