Gold Price Analysis: XAU/USD has a solid base after the quick recovery – Confluence Detector

Gold has bounced from the lows as the market mood improves.
The Confluence Detector is showing XAU/USD has substantial support at $1,748.
Gold is not a dream risk-off hedge, nor is Bitcoin [Video]

Yohay Elam FXStreet

What goes down, must come up – after gold tumbled down toward $1,700, it bounced quickly and is trading above $1,750 at the time of writing. The better market mood has pushed the dollar lower, and the precious metal is benefiting from the dollar's decline.

How is XAU/USD positioned after this turbulence?

The Technical Confluences Detector is showing that gold has support at $1,754, which is a cluster including the Bollinger Band 15min-Middle, the Simple Moving Average 10-15m, the Fibonacci 23.6% one-day and several additional lines.

A more considerable cushion awaits at $1,748, which is where the all-important Fibonacci 38.2% one-day and the Fibonacci 23.6% one-month.

Looking up, some resistance awaits at $1,764, which is the meeting point of the previous daily low and the Fibonacci 38.2% one day.

The next target is $1,771, which is the confluence of the Bollinger Band one-day Middle and the Pivot Point one-day Resistance 1 meet.

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.

Learn more about Technical Confluence

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.

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