Are Republicans and Democrats on the verge of a massive stimulus bill? House Speaker Nancy Pelosi reported progress and said the parties are drafting an accord, letting her deadline lapse. White House officials also seemed optimistic.
While both sides say some issues are left open, the prospects of Uncle Sam printing around $2 trillion have pushed XAU/USD significantly higher after long days of the lackluster movement.
How is the precious metal positioned on the charts?
The Technical Confluences Indicator is showing that immediate resistance awaits at $1,924, which is the convergence of the Bollinger Band 1h-Upper, the Pivot Point one-day Resistance 2, and the BB 15min-Upper.
The next level to watch is $1,937, which is where the PP one-day R3 and the Fibonacci 61.8% one-month hit the price.
Looking down, some support awaits at $1,915, which is the confluence of the BB 1h-Middle, the SMA 5-4h, and the PP one-day R1.
Strong support is at $1,909, a juncture of lines including the SMA 200-1h, the SMA 50-4h, the Fibonacci 23.6% one-day, and the SMA 10-4h.
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.
Learn more about Technical Confluence
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