XAUUSD eyeing $1,863 and $1,867 on recovery path – Confluence Detector
The price of gold is on the way back as investors remain optimistic about critical inflation in the United States.
The US dollar halts its rise as Treasury yields see a slight pullback.
The path of least resistance appears on the upside for XAUUSD on Monday.
The price of gold is in recovery mode on Monday, starting a new week on the right foot, as bulls reverse deep losses from Friday. The upbeat US labor market report raised the stakes for the dollar alongside the Treasury yield, weighing heavily on the shiny metal. The bulls are trying to come back, as the USD bulls take a breather ahead of the all-important US inflation release. Continued strength in oil prices helped the price of gold find a bottom, reviving its demand as a hedge against inflation concerns linked to energy costs. Let’s see how the yellow metal ranks on the different timescales, technically.
Also reD: Gold Chart of the Week: XAU/USD Bulls Eye Break of Critical Daily Resistance
Gold price: Main levels to watch
Technical Confluence Detector shows gold price needs to find acceptance above the critical intersection of the 38.2% Fibonacci 1-day, Fibonacci 61.8% 1-week and the previous four-hour high .
The next relevant upside target is the 61.8% 1-Month Fibonacci at $1,863, above which the immediate barrier at $1,865 will be tested. This level is the confluence of the one-day Fibonacci 61.8% and the four-hour SMA200.
Higher, the 1-day R1 pivot point at $1,867 will protect bearish interests, with the last line of defense for sellers at $1,874. This level is the meeting point of the previous week’s high and the one-week R1 pivot point.
On the other hand, strong support appears at $1,851, where the Fibonacci 23.6% 1-day, SMA50 4-hour and SMA5 1-day.
A break of the latter will expose the previous day’s low at $1,847, below which the one-day SMA200 at $1,842 will be challenged.
This is what it looks like on the tool
About the Technical Confluence Detector
The TCD (Technical Confluences Detector) is a tool for locating and signaling price levels where there is congestion of indicators, moving averages, Fibonacci levels, pivot points, etc. If you are a short-term trader, you will find entry points for countertrend strategies and chasing a few points at a time. If you are a medium-long term trader, this tool will allow you to know in advance the price levels where a medium-long term trend can stop and rest, where to unwind positions, or where to increase your position size.