Gold Price Analysis: XAU/USD eyes $1755 as the next upside target – Confluence Detector

Gold (XAU/USD) is consolidating its solid recovery from multi-month troughs on Wednesday, as the upbeat market mood weighs on the traditional safe-hav  |  03/03/2021 03:35

Gold (XAU/USD) is consolidating its solid recovery from multi-month troughs on Wednesday, as the upbeat market mood weighs on the traditional safe-haven. The vaccine optimism seems to have helped the risk-recovery, especially after US President announced the US will have enough vaccine supply significantly sooner, which will cover all adults by the end of May.

Gold staged a $30 rebound on Tuesday from $1707 after the retreat in the US Treasury yields calmed the markets and diminished the haven demand for the US dollar. Gold traders now await the critical US ADP jobs and ISM Services PMI data while keeping a close eye on the US $.9 trillion stimulus bill.

How is gold positioned on the technical charts?

Gold Price Chart: Key resistance and support levels

The Technical Confluences Detector shows that gold is battling a major resistance at $1739/40, which is the convergence of the previous high four-hour, Fibonacci 23.6% one-week and the previous day high.

The next upside target is placed at $1755, where the Fibonacci 23.6% one-month lies.

Acceptance above the latter could trigger a sharp rally towards the $1773 zone, where the SMA10 one-day, SMA100 one-hour and SMA50 four-hour coincide.

To the downside, immediate cushion awaits at $1730, the intersection of the Fibonacci 23.6% one-day, previous low one-hour and Bollinger Band one-hour Middle.

The sellers will then challenge significant support at $1726, the Fibonacci 38.2% one-day.

Further south, the bears need to crack $1717 to resume the downtrend. That level is the confluence of the previous month and week lows.

The previous day low at $1707 would be back in play, subsequently.

Here is how it looks on the tool

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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. 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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