Gold Price Analysis: XAU/USD eyes next two barriers after $1976 resistance tested – Confluence Detector
Gold (XAU/USD) tested the critical $1976 resistance while hovering near the highest levels in two weeks on Monday. The dovish Fed narrative, which implied that a period of low-interest rates would extend, continues to benefit the non-yielding gold.
Although a bounce in the US Treasury yields and risk-on market mood could make it an uphill task for the bulls to extend the advance towards the $2000 mark. Investors also remain wary ahead of the all-important US NFP report due later this week. In the meantime, let’s see how is gold positioned technically?
Gold: Key resistances and supports
The tool shows that gold tested the critical $1976 barrier, which is the convergence of the previous week high, previous high on four-hour and Bollinger Band four-hour Upper.
Acceptance above the latter will open doors towards the previous month’s high at $1985.
The next cap is seen at $1992, the pivot point one-week R1, as the bulls keep the $2000 level on their radars.
To the downside, minor support awaits at $1966, the convergence of the SMA5 four-hour and SMA50 15-minutes.
The immediate cushion is next seen at $1962, where the Fibonacci 23.6% one-day and Bollinger Band one-hour Middle intersect.
The Fibonacci 23.6% one-week support at $1959 could lend some support to the bulls. A sharp drop towards the robust support of $1950 (Fibonacci 38.2% one-week) should the above barrier fail to hold.
Here is how it looks on the tool
About the 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
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.
