Gold has dropped off the highs but is still on course to end the week on a high note. Democratic nominee Joe Biden is ahead in all swing states but the race is far from over. The elections can determine the fate of fiscal stimulus. Bulls have been encouraged by the Federal Reserve’s willingness to provide additional monetary support if needed.
How is XAU/USD positioned on the technical charts?
The Technical Confluences Indicator is showing that gold has support at $1,933, which is the convergence of the previous monthly high and the Fibonacci 38.2% one-day.
Further down, an additional cushion awaits at $1,923, which is where the Pivot Point one-month Resistance 1 and the Fibonacci 61.8% one-day meet up.
These two support lines are robust and resistance lines are weaker.
The first substantial hurdle is at $1,959, which is the confluence of the previous 4h-high, the PP one-week R3, and the Bollinger Band 4h-Upper.
Further up, the next cap is at $1,969, which is where the PP one-month R2 hits the price.
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.
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