Gold Price Analysis: XAU/USD eyes $1,891 to recover from vaccine blow – Confluence Detector
Gold has attempted a recovery after being hit hard by the news of a breakthrough in developing a coronavirus vaccine. The dramatic announcement by Pfizer and BioNTech – of 90% efficiency in their immunization candidate. A swift bounce from the covid crisis makes additional fiscal and monetary stimulus unnecessary, leaving fewer funds to flow into the precious metal.
However, XAU/USD is now bouncing. How is it positioned on the technical charts?
The Technical Confluences Indicator is showing that Gold is battling the $1,877 level, which is the convergence of the Simple Moving Average 10-15m and the Fibonacci 23.6% one-month.
Some resistance is at $1,888, where the Fibonacci 38.2% one-month hits the price.
The next cap is $1,891, which is where the previous 4h-high and the Bollinger Band one-hour Upper meet up.
Support is at $1,873, which is the confluence of the previous week's low, the SMA 5-4h, and the SMA 5-15m.
A critical cushion awaits at $1,860, which is a juncture including the BB one-day Lower, the BB 4h-Lower, and the previous month's low.
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.
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.
