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Gold consolidates the $90 bounce below $1950, having witnessed good two-way volatility on Wednesday. Falling US Treasury yields continue to pressure the US dollar across the board, supporting the yieldless gold. Fading hopes of additional US fiscal stimulus combined with coronavirus concerns continue to undermine the sentiment around the greenback.

Upbeat US CPI data sent the Wall Street indices to near-record highs, which knocked-off the safe-haven dollar while lifting the yellow metal from NY lows of $1907. Technically, the bull-bear tug-of-war is likely to extend as long as the price holds the $1900-1950 range.

XAU/USD: Key resistances and supports

The tool shows that the bright metal is struggling around the key resistance at $1933, which the Fibonacci 23.6% one-month and SMA50 15-minutes.

The next hurdle awaits at $1936, a minor confluence of Bollinger Band one-day Middle and SMA10 15-minutes.

The buying pressure is likely to accelerate above the latter, driving the spot to test the $1950 barrier, which is the previous day high.

Next up, the bulls will aim for the pivot point one-day R1 at $1956.

To the downside, the next relevant support is aligned at $1917, the Fibonacci 38.2% one-day. Strong support between $1910/07 will keep the buyers hopeful. That cluster of supports is the pivot point one-week S2.

Here is how it looks on the tool

 

About the Confluence Detector

With the TCI (Technical Confluences Indicator) tool you can easily locate areas where the price can find a support zone or resistance zone and make trading decisions. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points each time. If you are a medium- and long-term trader, this tool will allow you to know in advance the price levels in which a medium / long-term trend can stop your travel and rest, where to undo positions or where to increase your position.

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