Gold recovers losses, as the bulls look to regain control amid persistent downbeat tone around the US dollar. The greenback remains undermined by the sharp drop in the US Treasury yields, fiscal impasse and US-China optimism.
The yellow metal will continue to track the dollar moves amid a lack of significant US economic news, as attention turns towards the FOMC minutes due out on Wednesday. How is gold positioned technically?
XAU/USD: Key resistances and supports
The tool shows that gold is flirting with the $1951 hurdle, which is the convergence of the SMA5 one-day and Bollinger Band one-day Middle.
Up next, the bulls’ commitment will get tested at $1953, the Fibonacci 61.8% one-day.
A brief rally could be expected on a break above the latter, opening doors towards $1961, the intersection of pivot point one-day R1 and previous day high.
Alternatively, a bunch of minor supports could slow down the decline until the $1935 level gets attacked. That level is the Fibonacci 38.2% one-week.
The recovery momentum will remain intact as long as the price holds above the critical support at $1931, where the Fibonacci 23.6% one-week and pivot point one-day S2 meet.
Here is how it looks on the tool
About the Confluence Detector
With the TCI (Technical Confluences Indicator) tool you can easily locate areas where the price can find a support zone or resistance zone and make trading decisions. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points each time. If you are a medium- and long-term trader, this tool will allow you to know in advance the price levels in which a medium / long-term trend can stop your travel and rest, where to undo positions or where to increase your position.
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