Gold Price Analysis: XAU/USD needs to break $1,808 to run higher– Confluence Detector
- Gold has been marching higher above $1,800, extending its gains.
- The Confluence Detector is showing that $1,808 is a critical barrier.
- Gold Price Forecast: Bullish flag breakout in play for XAU/USD
The party continues – that is the current mood in markets and it is supportive of further gains for gold. Investors seem convinced that the Federal Reserve will refrain from any immediate tapering of its bond-buying scheme in response to the rapid spread of the Delta covid variant. Prospects of more dollars printed boost the precious metal.
XAU/USD broke above $1,800 on Monday and has been edging higher on Tuesday. How is it positioned on the charts?
The Technical Confluences Detector is showing that gold faces significant resistance at $1,808, which is the convergence of the Fibonacci 38.2% one-month and the Bollinger Band 4h-Upper.
The next cap is far and weak – XAU/USD's next target is $1,818, which is the meeting point of the Fibonacci 23.6% one-month and the Pivot Point one-week Resistance 3.
Immediate support is at $1,804, which is where the BB 1h-Middle, the Simple Moving Average 100-15m and other lines hit the price in a dense cluster.
Further down, the next cushion is at $1,796, which is a juncture including the previous weekly high and the SMA 10-4h.
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.
