Gold Price Analysis: XAU/USD battle lines at $1,808 and $1,775– Confluence Detector
- Gold has been struggling to advance as the market mood sours.
- The Confluence Detector is showing XAU/USD's battle lines.
- Gold Weekly Forecast: XAU/USD looks to extend rebound ahead of FOMC Minutes
Are stocks set for a turnaround Tuesday? That is the main question for markets – and also for gold. Both assets await the all-important speech by Federal Reserve Chair Jerome Powell. If he follows the hawks by leaving an open door to tapering in September, the precious metal would suffer. However, if the world's most powerful central banker maintains his dovish stance, XAU/USD could surge higher.
How is gold positioned on the charts?
The Technical Confluences Detector is showing that XAU/USD is stuck in a narrow range. It is capped by $1,793, which is the convergence of the Fibonacci 61.8% one-month, the Simple Moving Average 5-1h and the Bollinger Band 15min-Middle.
Near-term support is at $1,789, which is a cluster including the SMA 5-4h, the BB 1h-Middle, the previous day's high and other lines.
If volatility rises, an upswing could send gold to $1,808, which is where the Fibonacci 38.2% one-month and the 100-day SMA meet.
Strong support awaits at $1,775, which is the confluence of two Pivot Points, the one-month Support 1 and the one-day Support 1.
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.
Learn more about Technical Confluence