Gold prices have returned to trade in tandem with stock markets and are on the rise. Investors are optimistic about President Donald Trump’s condition, hoping he can leave the hospital shortly and return to regular work.
Moreover, the precious metal is benefiting from reports that Republicans and Democrats are making progress in talks for the next fiscal stimulus package.
How is XAU/USD positioned on the charts?
The Technical Confluences Indicator is showing that gold has broken above several resistance lines, which now turn into support. Close to its current price, XUA/USD has support at around $1,910, which is the convergence of the Simple Moving Average 10-15m and the Fibonacci 61.9%.
It is followed by a considerable cushion at $1,904, which is a juncture including the previous four-hour high, the Fibonacci 38.2% one-month, and the SMA 50-1h.
The next support line is at $1,901, which is the confluence of the Bollinger Band 1h-Middle, the SMA 10-4h, the Fibonacci 38.2$ one-day, and the SMA 100-15m.
Resistance is at $1,926, which is the meeting point of the Pivot Point one-week Resistance 1 and the SMA 200-4h.
Further above, the upside target is $1,938, which is where the PP one-day R3 and the Fibonacci 61.8% one-month converge.
Key XAU/USD resistances and supports
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.
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