Gold Price Forecast: XAUUSD down but not out, key levels to watch – Confluence Detector

• Gold Price is off monthly top but the bullish potential remains intact.
• The US dollar index is set for the third straight weekly loss.
• XAU bulls could likely regain control amid mixed markets.

Gold Price is consolidating this week’s rebound to one-month highs above $1,870 on Friday, as bulls take a breather amid mixed markets. A sense of caution prevails, in the face of the recent series of disappointing US economic data, which has tempered the Fed tightening expectations. The US Treasury yields are stabilizing after the previous retreat, capping the upside in the yellow metal. Traders refrain from placing any directional bets on XAUUSD, as they await the critical US NFP data for fresh trading opportunities.

Also read: Gold Price Forecast: Will XAUUSD extend the upside break on US NFP?

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the Gold Price is keeping its range below a stack of healthy resistance levels around $1,870, which is the convergence of the previous day’s high, the previous week’s high and the SMA5 four-hour.

The next stop for bulls is seen at the pivot point one-day R1 at $1,878, above which the confluence of the pivot point one-week R2 and Bollinger Band one-day Upper around $1,882 will come into the picture.

On the flip side, if the corrective mode extends, then sellers could gear up for a sustained break below strong support at $1,862. At that level, the Fibonacci 61.8% one-month, Fibonacci 23.6% one-week and the Fibonacci 38.2% one-day coincide.

The additional declines will call for a test of the Fibonacci 38.2% one-week at $1,859.

Powerful support of around $1,854 is likely to limit the bearish pressure on XAU bulls. That level is the intersection of the SMA5 one-day, SMA50 four-hour and the Fibonacci 61.8% one-day.

Here is how it looks on the tool

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.