Gold Price Analysis: XAU/USD to face an uphill task, with eyes on $1969 – Confluence Detector
- 21st September 2020
- Posted by: Hakeem
- Category: Commodities, FOREX MARKET ANALYSIS
Gold (XAU/USD) is wavering in a familiar range around $1950, looking for a strong catalyst for a range break out. The US dollar weakness amid US fiscal impasse and concerns over the economic recovery underpin the metal.
Meanwhile, the US-China tensions and correction in the US equities also buoy the sentiment around the safe-haven. However, the Fed’s reluctance to further stimulus has limited the gold’s attempts on the upside. How is gold positioned technically ahead of the Fed Chair Powell’s multiple appearances this week?
Gold: Key resistances and supports
The Technical Confluence tool shows that gold failed to hold onto the significant resistance at $1954, which is the SMA5 one-hour and Bollinger Band four-hour Middle.
Therefore, to the downside, the spot could find dense support around $1947-$1945 levels, where the Fibonacci 38.2% one-month coincide with SMA10 one-day.
A fresh sell-off could be triggered below the latter, opening floors for a test of the previous week low of $1932.
Alternatively, recapturing of the critical barrier at $1954 could call for a test of the next upside barrier at $1958, the confluence of the SMA200 four-hour and Fibonacci 38.2% one-week.
Further north, Friday’s high at $1961 could be tested, exposing the powerful $1969 hurdle, the pivot point one-day R2.