Gold has been ablle to hold onto $1,800, showing its resilience in weathering immense selling pressure. The precious metal has come under pressure amid a risk-on mood favoring stocks. Markets have now taken a breather, allowing the XAU/USD to bounce to higher ground.
However, gold is still not out of the woods as the charts are pointing to further downside.
The Technical Confluences Indicator is showing that XAU/USD faces some resistance at $1,811, which is the convergence of the Fibonacci 23.6% one-day, the previous 4h and the Simple Moving Average 10-15m.
A critical cap awaits at $1,818, which is the meeting point of the SMA 10-4h, the Pivot Point one-month Support 2, the Fibonacci 38.2% one-day, and the Bollinger Band 15min-Upper.
Gold has support at $1,884, which is the meeting point of the Pivot Point one-week Support 3 and the SAM 5-4h.
There are several soft cushions on the way down, with a noteworthy downside target at $1,792, where the Pivot Point one-day Support 1 hits the price.
Key XAU/USD resistances and supports
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.
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