Gold Price Analysis – XAU/USD path of least resistance remains up after NFP – GoldZeus
Weak job numbers are good for gold, as they imply more dollar-printing from the Federal Reserve – until investors have a rethink. While the US gained only 194,000 positions in September, upside revisions and silver linings such as temporary Delta-related halts changed the narrative. As the bar for Fed tapering is low, the weak data is still good enough for the bank to cut back on its $120 billion/mnth scheme. The precious metal has erased its gains.
Now that the dust has settled, what’s next for XAU/USD?
The Technical Confluences Detector is showing that gold has strong resistance at $1,748, which is the convergence of the Pivot Point one-day Support 1 and the Fibonacci 38.2% one-week, among others.
Looking up, the resistance cluster awaiting at $1,765 seems weaker. It consists of the PP one-day Resistance 1 and the Fibonacci 38.2% one-month.
Looking further above, the next line to watch is $1,780, which is a juncture of lines including the Bollinger Band 15min-Upper, the PP one-day Resistance 3 and the Simple Moving Average 200-4h.
Below $1,748, the next cushion is $1,738, which is where the Fibonacci 61.8% one-week hits the price.
XAU/USD resistance and support levels
The GoldZeus finds exciting opportunities using Technical Confluences. The TC 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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