Gold (XAU/USD) is looking to resume its uptrend towards $1900 following the overnight corrective pullback. No breakthrough on the $900 billion stimulus package talks combined with post-Fed US dollar comeback knocked-off the metal.
However, the progress made by the US lawmakers on the aid package, with a deal likely seen before Christmas, keeps the XAU bulls hopeful. Expectations of more funds from the US Congress and the Fed are likely to bode well for gold.
How is gold positioned on the charts?
The Technical Confluences Indicator shows that the XAU/USD pair is battling immediate resistance seen at $1885, which is the intersection of the Fibonacci 38.2% one-day, SMA10 one-day and previous high one-hour.
The bulls will then challenge the critical barrier at $1890, where the Fibonacci 23.6% one-day coincides with the Fibonacci 61.8% one-month.
The previous day high of $1896 could be next on the bull’s radars. Further up, the $1900 critical hurdle is the level to beat for the buyers. That level is the meeting point of Pivot Point one-week R2 and Pivot Point one-day R1.
Acceptance above the latter is needed to test the powerful resistance at $1907, the SMA100 one-day.
To the downside, strong support is aligned at $1876, which is the confluence of the previous week high and Fibonacci 61.8% one-day.
The next significant cushion awaits at $1869, the Pivot Point one-week R1. The last resort for the bulls is seen at the Fibonacci 23.6% one-week level of $1862
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
Share
