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Gold Price Forecast: XAU/USD looks to $1800 and $1805, NFP in focus – Confluence Detector

Gold price cheers the markets’ re-pricing of the global tightening expectations, looking to recapture the $1800 mark. Gold price rallied hard, despite the resurgent US dollar demand on Thursday, as the dovish BOE rate decision added to the Fed’s push back of the lift-off bets. Gold traders now eagerly await the US Nonfarm payrolls data and the end of the week flows for a fresh direction.

Read: US Nonfarm Payroll October Preview: Inflation to the rescue?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold eyes immediate resistance at $1796, the Fibonacci 61.8% one-week.

The next upside barrier awaits at $1799, the Fibonacci 23.6% one-month and previous day’s high.

The confluence of the pivot point one-week R1 and pivot point one-day R1 around $1806 will be next on the buyers’ radars.

Buying resurgence will then see a rally towards the previous week’s high of $1810.

Alternatively, the bears test the bullish commitments at $1791, where the SMA10 one-day and Fibonacci 23.6% one-day coincide.

A fierce cushion appears around $1787, which is the intersection of the SMA100 four-hour, Fibonacci 38.2% one-day and one-month.

The line in the sand for gold bulls is seen at $1781. That level is the meeting point of the SMA50 one-day, Fibonacci 61.8% one-day and Fibonacci 23.6% one-week.

Here is how it looks on the tool

fxsoriginal

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Author

Dhwani Mehta

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.

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