Gold Price Forecast: XAU/USD remains on track to test key $1792 support – Confluence Detector

Gold price remains vulnerable as risk-off flows boost the US dollar.
‘Sell everything mode’ engulfs gold price amid Delta covid strain woes.
Gold Weekly Forecast: Possible correction to $1,800 as key resistance holds.
Gold price is extending its corrective downside on Monday, reversing half the previous week’s gains, because the safe-haven demand for the US dollar remains unabated amid broad risk-aversion. Investors fret about the escalating Delta coronavirus variant cases globally and its impact on the pace of the economic recovery. Markets are during a ‘sell everything mode’ and appear to trust only the last word reserve currency, the US dollar, in times of panic and uncertainty. Meanwhile, mixed US Retail Sales and Consumer Sentiment data spurred inflation risks on growth, because the Fed prepares for monetary policy normalization.
Further dampening the sentiment around gold price, Indian gold was offered at discount after a jump in local prices curbed demand for the metal. Sell-off also ensued after gold price breached the SMA200 one-day support and closed the week below the latter. Looking forward, gold price risks deeper declines amid a scarcity of healthy support levels
Read: Delta Doom is about to storm America, the dollar could emerge as head
Gold Price: Key levels to observe
The Technical Confluences Detector shows that gold price has taken out all the key support levels, because the sell-off resumes towards a minor cap at SMA100 four-hour of $1796.
Further south, powerful support at $1792 will test the bearish commitments. That level is that the confluence of the SMA100 one-day, pivot point one-week S1 and therefore the previous week low.
The last line of defense for gold bulls is seen at the Fibonacci 23.6% one-month at $1790.
On the flip side, immediate resistance is aligned around $1809, where the SMA10 one-day, Fibonacci 61.8% one-week and therefore the previous day low converge.
Gold buyers got to find a robust foothold above $1813 to unleash further recovery gains. At that time , SMA50 four-hour, SMA200 one-hour and Bollinger Band one-hour Middle merge.
Up next the bulls will target the intersection of the Fibonacci 38.2% one-week and Fibonacci 23.6% one-day at $1815.
Here is how it’s on the tool
fxsoriginal
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.

admin

Read Previous

Silver Price Analysis: XAG/USD bears look to seize control near $26.00 mark

Read Next

US Dollar Index pushes higher, targets 93.00

Leave a Reply

Your email address will not be published. Required fields are marked *