Gold Price Analysis: XAU/USD eyes $1921 upside level amid softer USD, vaccine hopes – Confluence Detector
Gold (XAU/USD) edges higher starting out a fresh week, challenging the $1900 hurdle amid a broadly softer US dollar. Coronavirus vaccine optimism and the Asia-pacific trade deal (RCEP) offset concerns over rising cases globally and boost the appetite for the riskier assets at the expense of the safe-haven greenback.
The vaccine euphoria is back in play this Monday, although the second virus wave worries continue to linger amid a light data docket. Let’s take a look at how gold is positioned technically.
Gold: Key resistances and supports
The Technical Confluences Indicator shows that XAU/USD bulls are flirting with $1900, which is the SMA200 on four-hour.
The next resistance in sight remains the $1906 level, where the Fibonacci 61.8% one-month lies.
A sharp rally could be in the offing following a break above the latter, with a test of the critical $1921 barrier inevitable. That level is the convergence of the Fibonacci 61.8% one-week, pivot point one-day R3 and pivot point one-month R1.
On the flip side, a strong cap awaits at $1888, the intersection of the SMA5 four-hour, Fibonacci 38.2% one-day and one-month.
Acceptance below the latter could expose the next minor support at $1883, where the Fibonacci 61.8% one-day and SMA10 four-hour coincide.
Further south, the confluence of the SMA100 one-hour and Fibonacci 23.6% one-month at $1878 could challenge the bears’ commitment.
Here is how it looks on the tool
About 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
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
