Home Gold Price Analysis: XAU/USD needs to crack $1,856 to unleash the upside – Confluence Detector
FXStreet News

Gold Price Analysis: XAU/USD needs to crack $1,856 to unleash the upside – Confluence Detector

Gold has been edging higher amid growing hopes that Democrats and Republicans are nearing a stimulus bill. The latest reports suggest that the parties have set aside the most contentious topics and are ready to forge an accord worth some $900 billion. The funds would boost the precious metal.

The Federal Reserve is also in focus and any help would also send XAU/USD higher. How is it positioned on the technical charts? 

The Technical Confluences Indicator is showing that critical resistance awaits at $1,856, which is the convergence of the Fibonacci 38.2% one-week, the Simple Moving Average 5-1h, the Bollinger Band 15min-Middle and the previous daily high.

There are several additional caps on the way up, and a noteworthy upside target is $1,876, which is where the previous week’s high and the Pivot Point one-day Resistance 2 meet up.

Some support awaits at $1,846, which is the confluence of several SMAs, including the 50-4h, the 200-1h, the 50-1h and more.

A considerable cushion awaits at $1,835, which is where the Fibonacci 61.8% one-day and the PP one-day Say Support 1 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

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.