Gold Price Analysis: XAU/USD has three stepping stones on the way up – Confluence Detector

Gold remains well bid at the beginning of the new trading week, changing hands at around $1,770.  XAUD/USD benefits from depressed US ten-year yields, which are dropping despite the economic boom that America is experiencing. The yieldless precious metal needs returns on US debt to fall in order to move higher. 

How is gold positioned on the technical charts?

The Technical Confluences Detector is showing that XAU/USD faces its initial hurdle at $1,778, which is the convergence of the Fibonacci 23.6% one-day, the previous 4h-low and the Bollinger Band 1h-Middle.

The second cap is at $1,784, which is where the previous daily high meets the Simple Moving Average 5-1h. 

Finally, $1,786 is where the Pivot Point one-day Resistance 2 hits the price. 

An initial shock absorber awaits gold at $1,775, which is the confluence of the Fibonacci 38.2% one-day and the previous 1h-low. 

It is followed by strong support at $1,773, which is where the BB one-day Upper and the SMA 50-1h converge. 

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.

Learn more about Technical Confluence