- Gold has been affected by the updated forecasts of the Fed.
- The Confluence Detector shows that the XAU / USD has significant support at $ 1,822.
The rate hikes are coming, perhaps in 2023, but that was before the Federal Reserve’s previous projections of increasing borrowing costs in 2024 alone. The world’s most powerful central bank has started an initial debate about cutting interest rates. your bond purchases as the economy recovers rapidly.
The market reacted with a jump in bond yields, making gold less attractive. As the dust settles from the decision, how does the gold rank on the technical charts?
The Technical Confluence Detector is showing that the XAU / USD has some support in 1830$, which is where the 50-day SMA and the one-week support at pivot point 3 converge.
A more meaningful cushion just waits in 1822$, which is where the Fibonacci 61.8% of a month hits the price.
Looking up, resistance waits on 1850$. In addition to being a round number, it is also the confluence of the one-day Pivot Point S1 and the one-week Pivot Point S2.
Higher up, another critical barrier is in 1857$, which is a conjuncture including the 15m SMA 50 and the one-month Fibonacci 38.2%.
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 indicate those price levels where there is a indicator congestion, moving averages, Fibonacci levels, pivot points, etc. Knowing where these congestion points are is very helpful to the trader, and can be used as a basis for different strategies.
More information on Technical Confluences
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