Gold Price Forecast: XAUUSD eyes $1,906 as the next bearish target – Confluence Detector
- Gold Price remains vulnerable amid hawkish Fed bets, firmer US dollar.
- Risk-aversion remains at full steam and boosts the USD at XAUUSD’s expense.
- Friday’s closing is critical for XAUUSD’s bullish traders after the decline.
The US dollar march northward appears unstoppable amid the hawkish Fed narrative, Beijing lockdown fears and global economic growth concerns on the whole. Gold Price, therefore, remains on slippery slopes amid a ‘sell everything’ mode playing out so far. The market’s perception of risk sentiment, the dollar and the yields’ price action will have a notable influence on XAUUSD, as the Fed policymakers step aside during the ‘blackout period’. The US Q1 Preliminary GDP will remain the key event risk this week.
Also read: Gold Price Forecast: $1,900 could be next key support as bears refuse to give in
Gold Price: Key levels to watch
The Technical Confluences Detector shows that Gold Price is gyrating near daily lows of $1,912, awaiting a fresh impetus to extend the downside momentum towards $1,910. That level is the pivot point one-day S2.
The next critical support is seen at $1,906, which is the confluence of the pivot point one-week S1 and the Bollinger Band one-day Lower.
Further down, the $1,900 round level could challenge the bullish attempts.
On the upside, strong resistance is placed around $1,920, where the pivot point one-day S1 and Bollinger Band four-hour Lower merge.
The previous day’s low of $1,927 will be next on the buyers’ radars.
XAUUSD bulls will then try to take out the Fibonacci 23.6% one-day at $1,934. The last line of defense for gold bears is pegged around $1,937, the convergence of the SMA50 one-day and Fibonacci 38.2% one-day.
Here is how it looks on the tool
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
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.
