Gold Price Forecast: XAU/USD eyes deeper losses if $1805 support caves in – Confluence Detector

Gold price starts August within the red amid a rebound in risk appetite before ISM.
US infrastructure bill optimism, DYX weakness fails to supply reprieve to gold bulls.
Gold: Bulls hesitate as focus shift to NFP.
The downbeat tone around gold price remains unabated this Monday, because the bears extended their control after Friday’s steep drop. The progress on the US infrastructure bill and broad US dollar weakness fail to supply any reprieve to the bulls, as gold price heads towards the $1800 mark. The risk-on rally within the global stocks combined with stabilizing Treasury yields weighs negatively on gold price. Investors also ignore the mounting tensions surrounding the Delta covid variant spread globally. Attention now turns towards US ISM Manufacturing PMI and company earnings reports for fresh trading impulse.

Gold Price: Key levels to observe
The Technical Confluences Detector shows that gold has breached powerful support at $1808, which was the convergence of the Fibonacci 38.2% one-month, SMA50 four-hour and SMA10 one-day.

Therefore, sellers now target the $1805 support, where the Bollinger Band one-hour Lower lies.

The next relevant cushion awaits at the SMA100 one-day at $1801, below which a drop towards the previous week’s lows around $1790 can’t be ruled out.

If the buyers recapture the abovementioned key support at $1808, which has now became resistance, gold price could seek a retest of the SMA100 four-hour at $1810.

Further up, $1813 could act as a stiff resistance. At that time , the SMA100 one-hour coincides with the previous high four-hour and SMA5 four-hour.

The Fibonacci 23.6% one-day at $1816 might be subsequent target of interest for gold bulls.

Here is how it’s on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) may be a tool to locate and means those price levels where there’s a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you’re a short-term trader, you’ll find entry points for counter-trend strategies and hunt a couple of points at a time. If you’re a medium-to-long-term trader, this tool will allow you to understand beforehand the worth levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to extend your position size.


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