Gold Price Analysis: XAU/USD levels to watch ahead of critical US data – Confluence Detector

Renewed hopes of a potential US fiscal stimulus deal, helped Gold (XAU/USD) clinched two straight days of gains, as the XAU bulls remained hopeful of new funds to lift the prices northwards. President Donald Trump’s offer of $1.8 trillion in fiscal aid on Thursday helped narrow Wall Street losses and stall the US dollar rally.   

Despite the market optimism, gold struggles to extend the advance above $1900, as investors turn cautious ahead of the critical US Retail Sales and Michigan Consumer Sentiment data due later on Friday. Let’s take a look at gold technical charts, as it remains on track to book a weekly loss.

Gold: Key resistances and supports

The Technical Confluences Indicator shows that the yellow metal is stuck in a narrow range so far this Friday, now confronting the immediate upside barrier at $1910, which is the convergence of the previous day high and Bollinger Band 15-minutes Upper.

The next significant resistance is seen at $1912.50, the intersection of the previous high on four-hour and SMA5 one-day.

Only a sustained move above the latter could revive the bullish momentum, as the buyers aim for $1917, the Fibonacci 23.6% one-week. Further up, the pivot point one-day R2 at $1922 could likely challenge the bulls’ commitment.

On the flip side, a move below the dense cluster of support levels around $1904/02 would trigger a fresh leg down in the spot. That confluence area comprises of Fibonacci 38.2% one-month, SMA5 four-hour and SMA200 one-hour.

 The next soft downside cap is aligned at $1985, where the SMA100 four-hour coincides with the Fibonacci 61.8% one-week.

A powerful support of the Fibonacci 23.6% one-month at $1883 is the level to beat for the bears.

Here is how it looks on the tool

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About Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

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