Gold has risen above $ 1,900 as hopes for an American stimulus have resurfaced. The Speaker of the House of Representatives, Nancy Pelosi, and the Secretary of the Treasury, Steven Mnuchin, will speak again. If they can agree on a multi-million dollar aid package, it could boost the precious metal, while another failure could bring it down.
How is XAU / USD positioned on the charts?
The technical confluences indicator shows that gold has robust support at around $ 1,904, which is a dense group of levels including 38.2% Fibonacci in a month, 38.2% Fibonacci in one day, the 5 simple moving average. -4h, the SMA 200 -1h, the SMA 10-4h, and the Bollinger Band 1h.
Looking up, a significant cap awaits at $ 1,915, but it is weaker than the previously mentioned support line, which opens the door for further ups. At $ 1,915, a line conjuncture including the 200-4h SMA, the one-week Fibonacci 61.8% and the previous daily high await the XAU / USD.
Higher up, the target on the upside is $ 1,927, which is the confluence of the 3-day resistance of the pivot point and the 50-day SMA.
Support below is at $ 1,894, which is the meeting point of the PP overnight S1 and the Fibonacci 23.6% one week.
Key resistances and supports
The confluence detector finds interesting opportunities using technical confluences. The TC is a tool to locate and indicate those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are is very useful for the trader, and can be used as a basis for different strategies.
Credits: Forex Street
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