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XAUUSD sees $1,798 and $1,794 as next downside targets – Confluence Detector

  • Gold prices return to red zone despite weaker US Treasury yields.
  • Markets remain cautious ahead of Fed minutes and upcoming death cross.
  • XAUUSD may resume selling below $1,800 amid light trading conditions.

Gold prices are resuming their downward momentum at the start of the new week after witnessing an impressive rebound on Friday. The US dollar is consolidating a minor rebound amid a renewed downtick in Treasury yields and falling S&P 500 futures. A mixed market mood and holiday-thin trading kept gold bulls at bay. A death cross lurking on the daily chart is giving XAUUSD sellers a much-needed boost. Attention now turns to Wednesday’s FOMC June meeting minutes for further price direction on the bright metal. In the meantime, Fed rate hike expectations and recession fears continue to dominate markets and influence silver price dynamics.

Also read this: Gold Price Forecast: Death Cross Ring Knell for XAUUSD, Eyes Turn to Fed Minutes

Gold Price: Key Levels to Watch

The technical confluence detector shows gold price testing the 38.2% Fibonacci one-week support at $1,806, below which the next downside target is aligned at the previous month’s low of $1,803.

The Fibonacci 23.6% one-week and Bollinger band confluence support at the one-day low of $1,798 will then come to the rescue of XAU buyers. The last line of defense for gold bulls can be seen around $1,794, the Fibonacci 61.8% one-day and the pivot point one-day convergence of S1.

On the flip side, Friday’s high of $1,812 will attract buyers, above which they need to recover the SMA5 one-day at $1,816. Fibonacci 23.6% one-month, SMA50 four-hour intersection and pivot point at $1,820 is a tough seed for bulls to break overnight R1.

Here’s how it looks in the tool

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About the technical confluence detector

TCD (Technical Confluences Detector) indicators, moving averages, Fibonacci levels, pivot points etc. are tools for detecting and indicating congested price levels. If you are a short-term trader, you can find access points to counter-trend strategies and hunt a few points at a time. If you are a medium-long-term trader, this tool allows you to know in advance where the medium to long-term trend can stop and rest, where to unwind positions or where to increase position size.

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