Gold (XAU/USD) treads water around $1950, as the bulls turn cautious in the run-up to the Fed showdown. The dovish Fed expectations amid coronavirus-led economic risks and US fiscal stand-off keep the upside favored in the yellow metal. The buyers, however, await a fresh impetus for the next push higher, especially after a volatile session seen on Tuesday. Gold rallied to life-time highs of $1981.34 before correcting sharply to $1907. The bulls fought back control, as the price settled the day above $1950 levels. The risk trends continue to remain in play amid a broadly subdued US dollar, as it wallows near two-year lows across its main competitors and lends support to the precious metal. Let’s look at the Technical Confluences Indicator to gauge how the metal is positioned heading into the Fed decision. Key resistances and supports The tool shows that the bright metal is on track to test the powerful support aligned at $1937, where the pivot point one-month R3, pivot point one-week R1 and Fibonacci 61.8% one-day converge. That level will be a tough nut to crack for the sellers. Ahead of that key support, the bears could test the downside cushion at $1943, which is the confluence of the SMA10 four-hour and SMA50 one-hour. To the upside, the Fibonacci 38.2% one-day hurdle at $1954 offers immediate resistance. Acceptance above the latter will open doors towards $1964. The Fibonacci 23.6% one-day. Buyers will then aim for $1972, the intersection of the Bolling Band one-hour Upper and pivot point one-week R2, en route the record highs of $1981.34 reached on Tuesday. The path of least resistance appears to the upside amid dovish Fed expectations. Here is how it looks on the tool About the Confluence Detector The TCI (Technical Confluences Indicator) 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. View All Post By FX Street FXStreet News share Read Next EUR/GBP Price Analysis: Tuesday’s drop has exposed 50-day SMA support FX Street 3 years Gold (XAU/USD) treads water around $1950, as the bulls turn cautious in the run-up to the Fed showdown. The dovish Fed expectations amid coronavirus-led economic risks and US fiscal stand-off keep the upside favored in the yellow metal. The buyers, however, await a fresh impetus for the next push higher, especially after a volatile session seen on Tuesday. Gold rallied to life-time highs of $1981.34 before correcting sharply to $1907. The bulls fought back control, as the price settled the day above $1950 levels. The risk trends continue to remain in play amid a broadly subdued US dollar, as it… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
