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Gold (XAU/USD) is licking its wounds after sliding 2% on Tuesday, courtesy of the robust demand for the US dollar as a safe-haven.  The impasse on the US fiscal stimulus and growing coronavirus fears tempered the market sentiment. Two pharma giants pause their vaccine trials recently due to some unexplained side-effects.

Looking ahead, fresh updates on the virus cases and stimulus will be closely eyed amid ongoing Brexit noise. Let’s see how gold is positioned on the charts?

Gold: Key resistances and supports

The Technical Confluences Indicator suggests that the XAU bulls will face a hard time on the road to recovery amid a stack of healthy resistance levels. 

A powerful resistance is aligned around $1901-03, the convergence of the Fibonacci 38.2% one-month and one-day.

The next level to beat for the bulls is $1910, the SMA100 one-hour. Acceptance above the latter could open doors towards a test of the Fibonacci 23.6% one-week, the $1917 level.

Alternatively, immediate support is seen at $1892, the intersection of the pivot point one-week S1 and Bollinger Band four-hour Lower.

A break below that level could likely accelerate the downward momentum, with $1873 next in sight. That level is the previous week low.

Here is how it looks on the tool

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About 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