Gold is on the rise, coming out of lows near $ 1,900 as market sentiment improves ahead of a critical speech from Federal Reserve Chairman Jerome Powell. Will the Fed allow higher inflation and send investors to the precious metal?
Another positive factor is an announcement from Moderna – a pharmaceutical company – about the elderly responding well to its vaccine candidate. XAU / USD quickly jumped lower obstacles and now faces more fierce resistance on the technical chart.
Technical Confluences Indicator Shows XAU / USD Trading Above $1,937, a resistance line turned support. At this point, the Fibonacci 23.6% a week, the previous high an hour, and other lines converge.
A larger cushion is $1,932, which is a confluence comprising the Bollinger Band 4h-Middle and the Fibonacci 23.6% one week.
Looking up, the next target is $1,952, which is a strong resistance. It is a cluster including 38.2% Fibonacci one week, Simple Moving Average 50-4h, SMA 200-1h and 161.8% Fibonacci one day.
Higher, $1,956 is a soft cap, where the Pivot Point one-day Resistance 3 hits the mark.
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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