Gold Price Analysis: XAU/USD next critical support only at $1,822 after the Fed – Confluence Detector
- Gold has been hit by the Fed's upgraded forecasts/.
- The Confluence Detector shows that XAU/USD has significant support at $1,822.
- Gold Price Forecast: Gold drops hard to daily support on surprise hawkish Fed
Rate hikes are coming – perhaps only in 2023, but that is ahead of the Federal Reserve's previous projections of hiking borrowing costs only in 2024. The world's most powerful central bank has kicked off an initial debate about tapering down its bond buys as the economy recovers quickly.
The market reacted with a jump in returns on bonds – making yieldless gold less attractive. As the dust settles from the decision, how is gold positioned on the technical charts?
The Technical Confluences Detector is showing that XAU/USD has some support at $1830, which is where the 50-day Simple Moving Average and the Pivot Point one-week Support 3 converge.
A more significant cushion awaits only at $1,822, which is where the Fibonacci 61.8% one month hits the price.
Looking up, resistance awaits at $1,850. Apart from being a round number, it is also the confluence of the PP one-day S1 and the PP one-week S2.
Further above, another critical barrier is at $1,857, which is a juncture including the SMA 50-15m and the Fibonacci 38.2% one month.
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.
