Money managers are scrambling to modify their portfolios, reversing some of the recent market swings, as the month – and the quarter – draws to a close. For gold, this means reversing Tuesday’s decline to levels not seen since April. New Basel III requirements, as well as the Fed’s aggressive stance, were blamed for the dip.
What is the maximum XAU/USD price that may be reached?
Gold is battling $1,766.50, according to the Technical Confluences Detector, a price where the Simple Moving Average 10-4h and the preceding monthly low intersect.
The precious metal will face critical resistance at $1,775, which is the point where the 5-day SMA and the all-important Fibonacci 61.8 percent one-week meet.
The intersection of the previous week’s low and the Fibonacci 38.2 percent one day provides immediate support for XAU/USD at $1,764.
Another support level is $1,749, which is a crossroads between the Pivot Point one-day Support 1 and the PP one-week S2.
Using Technical Confluences, the Confluence Detector uncovers intriguing potential. The TC is a tool for locating and highlighting price levels when indicators, moving averages, Fibonacci levels, Pivot Points, and other indicators are congested. Knowing where these congestion areas are can be quite beneficial to a trader and can be used as a foundation for many tactics.
To learn more about Technical Confluence, go here./n
