The panic attack that markets suffered after Britain announced the discovery of the new covid strain seems to have faded away, allowing for some calm. Gold has also stabilized, consolidating around familiar levels. The effect of the US fiscal stimulus deal are mostly priced, and speculation begins about further support from the Federal Reserve and Uncle Sam.
How is XAU/USD after the whipsaw on the graphs?
The Technical Confluences Indicator is showing that the precious metal faces robust resistance at $1,875, which is a dense cluster of lines including the Simple Moving Average 10-1h, the Fibonacci 38.2% one-day, the previous 4h-high, the Bollinger Band 15min-Upper, and several other lines.
Further above, the upside target is $1,889, which is the meeting point of the Fibonacci 61.8% one-month and the Fibonacci 61.8% one-day.
Significant support awaits at $1,867, which is where the Fibonacci 38.2% one-week and the Fibonacci 23.6% one-day converge.
Further down, bears are targeting $1,855, which is the confluence of the SMA 200-4h and the previous daily low.
XAU/USD resistance and support levels
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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