XAU / USD looks south ahead of NFP, key levels to watch – Confluence detector
Gold is testing bullish commitments again near $ 1,800 levels, falling for the second day in a row, in anticipation of an earlier than expected unwinding of Fed monetary policy support. Treasury yields rose on hawkish Fed rhetoric, pushing the US dollar to weekly highs at the same time. That said, the price of gold remains on track for the worst weekly drop since mid-June. The breach of the long-standing SMA100’s one-day support at $ 1,805 has given gold sellers additional momentum as attention now turns to the crucial US NFP release scheduled for 12:30 GMT.
The U.S. labor market will set the tone for the price of gold in the coming weeks as it will offer new clues about the Fed’s next move, especially after Vice President Richard Clarida said the bank Central could start to reduce its bond purchases this year.
Read: Will the US NFP confirm the cross of death for gold? The decline remains privileged
Gold price: key levels to watch
the Technical Confluence Detector shows gold has tested the $ 1,797 support area, which is the convergence of the one-day S1 pivot point and the previous day’s low.
A firm break below the latter is needed to expose the previous week’s low at $ 1,793. One-month 61.8% Fibonacci coincides at this level.
Further south, the S2 one-day pivot point at $ 1,789 could be tested.
A massive sell off towards the S3 one-day pivot point at $ 1779 could be in sight if the bulls do not resist above the latter.
On the upside, immediate support is seen at $ 1,803, the confluence of the previous four-hour high and 23.6% one-day Fibonacci.
The next relevant bullish target is aligned with the intersection of the SMA100 one day and the 38.2% Fibonacci one day at $ 1,805.
Acceptance over the mighty hurdle of $ 1,809 is key to staging a meaningful near-term recovery.
At this point, Fibonacci 61.8% a day, Fibonacci 61.8% a week, and Fibonacci 38.2% a month meet.
This is what it looks like on the tool
About the technical confluence detector
The TCD (Technical Confluences Detector) is a tool to locate and report price levels where there is congestion of indicators, moving averages, Fibonacci levels, pivot points, etc. If you are a short term trader, you will find the entry points for countertrend strategies and chase 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 can stop and rest, where to unwind positions, or where to increase. your job size.