As the US Congress leaders make progress on talks over a $1 trillion covid aid package, markets eye an imminent stimulus deal, knocking off the US dollar further south. Expectations of additional funds are boosting the inflation-hedge Gold (XAU/USD), as it extends its break above the $1850 level. The coronavirus vaccine optimism also collaborates with the dollar’s weakness, offering extra zest to the XAU bulls. However, it remains to be seen if the metal extends the upside heading into the FOMC showdown. Let’s take a look at how is gold positioned on the charts? Gold Price Chart: Key resistances and supports The Technical Confluences Indicator shows that the XAU/USD pair is looking to extend Tuesday’s rally towards the $1863 upside target, which is the Fibonacci 23.6% one-week. On a break above the latter, the bulls are likely to challenge a strong cap at $1870, the Pivot Point one-week R1. Acceptance above that level could prompt a fresh advance towards the $1876 barrier, which is the convergence of the previous week high and Pivot Point one-day R2. On a break above the latter, the bulls could challenge the $1840 level, which is the confluence of the Pivot Point one-day R1 and SMA10 one-day. Alternatively, if the bulls fail to defend immediate support at $1856, the previous day high, the price could be poised for a gradual decline amid several minor support levels stacked up to the downside. The critical support at $1844 is expected to be a tough nut to crack for the bears. The Fibonacci 38.2% one-month at $1841 could also offer some support before the price hits the concrete cushion at $1836, the Pivot Point one-day S1. Here is how it looks on the tool About 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 US House Speaker Pelosi: Tomorrow we’ll be on schedule to get the job done FX Street 2 years As the US Congress leaders make progress on talks over a $1 trillion covid aid package, markets eye an imminent stimulus deal, knocking off the US dollar further south. Expectations of additional funds are boosting the inflation-hedge Gold (XAU/USD), as it extends its break above the $1850 level. The coronavirus vaccine optimism also collaborates with the dollar’s weakness, offering extra zest to the XAU bulls. However, it remains to be seen if the metal extends the upside heading into the FOMC showdown. Let’s take a look at how is gold positioned on the charts? Gold Price Chart: Key resistances and… 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.
