Gold is on the back foot after President Donald Trump abruptly announced the end of fiscal stimulus talks with the Democrats. The precious metal had been bid on expectations for another relief bill worth $1.6 to $2.2 trillion.
After slipping below $1,900, XAU/USD may face further pressure from technicals, which are showing that resistance is stronger than support.
The Technical Confluences Indicator is showing that gold has an initial hurdle at $1,892, which is the convergence of the Simple Moving Average 200-1h and the Fibonacci 38.2% one-week.
Further above, XAU/USD faces fierce resistance at $1,903, which is the meeting point of the all-important Fibonacci 61.8% one-day and the Fibonacci 38.2% one-month.
Support awaits at $1,886, which is a confluence point including the SMA 10-one-day, the SMA 5-15m, the Fibonacci 23.6% one-day, and the BB 15min-Middle.
Somewhat stronger support – yet weaker than that resistance line at $1,903 – is where the Fibonacci 23.6% one-month and the previous 4h-low.
Key XAU/USD resistances and supports
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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