XAU / USD to target $ 1765 and $ 1772 on buying resurgence – Confluence detector
The price of gold is struggling to extend Thursday’s rebound this Friday, although it remains well supported at the $ 1,750 level as the fourth quarter of 2021 kicks off. The shiny metal looks to end the week almost unchanged as the meteoric rally has helped the bulls find some breathing room as the price of gold is set to end its three consecutive weekly losses. The decline in US Treasury yields against a backdrop of risk aversion in the market keeps the buoyant tone intact around the price of gold. Investors remain cautious about the delay in US political wrangling and downside risks from the Fed, in light of soaring energy prices and slowing global economic recovery.
Read: Gold analysis: breakout model
Gold Price: Key Levels to Watch
According to Technical Confluence DetectorGold has regained its equilibrium and is looking to face key resistance at $ 1765, which is the convergence of yesterday’s high and Fibonacci at 38.2% on a month.
Before that, a dense cluster of healthy resistance levels around $ 1759 will come into play.
Higher, gold buyers are targeting 61.8% Fibonacci a week at $ 1768, above which the doors will open towards the strong resistance of $ 1772.
Alternatively, sellers could test the support area of $ 1752 if the price of gold changes course. It is the zone of confluence of the SMA10 one day, Fibonacci 23.6% a week and SMA50 four hours.
The recovery momentum will likely remain intact as long as the price of gold remains above the $ 1,748 level. At this point, 38.2% Fibonacci a day coincides with 23.6% Fibonacci a month.
The latest demand area is seen at around $ 1,742, the intersection of SMA5 one day, SMA100 one hour, and SMA10 four hours.
This is what it looks like on the tool
About the technical confluence detector
The TCD (Technical Confluences Detector) is a tool to locate and report 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 the entry points for countertrend strategies and chase a few points at a time. If you are a medium to long term trader, this tool will allow you to know in advance the price levels where a medium to long term trend can stop and rest, where to unwind positions, or where to increase. your job size.