Gold (XAU/USD) is licking its wounds after Wednesday’s 1% sell-off induced by the optimism over the coronavirus vaccine developments, with the US FDA set to approve Pfizer covid vaccine later this Thursday. Expectations of additional fiscal stimulus from both sides of the Atlantic keep the gold buyers hopeful. Ongoing negotiations between the Democrats and Republicans around an aid package worth around $900 billion could likely continue, especially after House lawmakers voted to pass a one-week stopgap funding bill. However, jittery markets amidst an elusive Brexit agreement and looming EU budgetary talks could re-ignite the haven demand for the US dollar, capping the recovery in gold. How is gold positioned technically? The Technical Confluences Indicator shows that the XAU/USD pair is batting a critical hurdle at $1842, which is the convergence of the Fibonacci 38.2% one-month and SMA5 four-hour. The next relevant barrier is seen around $1845, which is the Fibonacci 38.2% one-day. The previous week high of $1848 could challenge the XAU bulls further out. A firm break above the latter could expose the $1854 barrier, where the Fibonacci 61.8% one-day coincides with the SMA10 four-hour. To the downside, an immediate cap is aligned at $1836, the convergence of the Fibonacci 23.6% one-day and SMA10 one-hour. The sellers will then target the $1829 cushion, the intersection of the Fibonacci 23.6% one-week and SMA200 one-hour. Further south, the $1819 is the level to beat for the bears. That level is 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 EUR/USD battles 1.2100 on road to recovery ahead of ECB FX Street 2 years Gold (XAU/USD) is licking its wounds after Wednesday’s 1% sell-off induced by the optimism over the coronavirus vaccine developments, with the US FDA set to approve Pfizer covid vaccine later this Thursday. Expectations of additional fiscal stimulus from both sides of the Atlantic keep the gold buyers hopeful. Ongoing negotiations between the Democrats and Republicans around an aid package worth around $900 billion could likely continue, especially after House lawmakers voted to pass a one-week stopgap funding bill. However, jittery markets amidst an elusive Brexit agreement and looming EU budgetary talks could re-ignite the haven demand for the US… 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.
