Gold remains in decline as uncertainty remains prevalent ahead of the very important central bank policy review. Federal Reserve Chairman Jerome Powell is set to deliver a speech that could open the floodgates for more monetary stimulus – potentially pushing the precious metal higher.
However, investors are not yet convinced that additional money printing is underway, reducing their bets on XAU / USD.
How is gold positioned on the charts?
Technical Confluences Indicator Shows XAU / USD is facing fierce resistance around $1,933, which is the convergence of the 15min-Upper Bollinger Band, 5-4h Simple Moving Average, 100-15m SMA, 23.6% Fibonacci over a month, and more.
Higher, gold is capped at $1 936, which is the meeting point of the previous 4h-high and 23.6% Fibonacci a week.
Looking down, support is waiting for you at $1,906, this is where Pivot Point’s 1-day support and the previous weekly low converge.
Another cushion is $1,898, which is the confluence of PP one day S2 and 38.2% Fibonacci one month.
XAU / USD resistors and key supports
The confluence detector finds interesting opportunities using Technical Confluences. The TC is a tool to locate and report the price levels where there are clutter of indicators, moving averages, Fibonacci levels, pivot points, etc. Knowing where these congestion points are is very useful for the trader and can be used as the basis for different strategies.
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