Safe-haven US dollar is back in demand on Thursday amid fading hopes of a US fiscal deal and election interference risk. The market mood soured after top American intelligence officials warned that Iran and Russia could be trying to disrupt the upcoming Presidential election.
Meanwhile, President Donald Trump’s accusations of the Democrats unwilling to reach an agreement on the multi-trillion-dollar fiscal aid raised doubts over the further stimulus talks. Amid jittery markets, the dollar stands tall, although technically the XAU bulls still insist, keeping the sentiment buoyed around gold.
The Technical Confluences Indicator shows that a bunch of healthy resistance and support levels are stacked up for the bright metal. However, the path of minimum resistance appears to the upside.
The XAU bulls march towards the next significant resistance at $1920, the confluence of the SMA5 four-hour and SMA100 15-minutes.
A break above the latter would expose the Fibonacci 23.6% one-day level placed at $1925. If the price surges past that level, $1928 (pivot point one-week R1) will offer immediate resistance.
Further north, the Fibonacci 61.8% one-month at $1938 is the level to beat for the bulls.
Alternatively, a dense cluster of supports around $1909 continues to guard the downside. That level is the convergence of the pivot point one-day S1, SMA200 one-hour and SMA50 four-hour.
The next downside target is set at $1904, the Fibonacci 38.2% one-month, acceptance below which could trigger a drop towards the $1896 support zone. At that level, the Fibonacci 23.6% one-week and Bollinger Band four-hour Lower coincide.
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.