fxstreet.com 02 Feb, 2021 08:00 am

XAU/USD needs acceptance above $1870 to unleash further upside – Confluence Detector

XAU/USD needs acceptance above $1870 to unleash further upside – Confluence Detector
Gold (XAU/USD) is poised to extend Monday’s advance, as markets cheer the renewed hopes of a likely US fiscal stimulus deal that has diminished the ha

The XAU buyers need to crack the abovementioned barrier to testing the previous day high at $1872.The bears could then counter a dense cluster of support levels around $1850/ $1848, which is the intersection of the SMA5 one-day, previous day low, Fibonacci 38.8% one-day, SMA50 one-day and SMA10 four-hour.The next stop was the bulls is seen at $1870, which is the pivot point one-week R1.

At the level, the pivot point one-day R1 coincides.The Technical Confluences Indicator shows that gold’s immediate moves higher are capped by the confluence of the previous high four-hour, Fibonacci 38.

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