Gold buying opportunity, before falling heavily to new low?
Key resistances and supports
The Technical Confluences Indicator shows that gold is attempting a bounce from multi-month troughs, heading towards the major resistance at $1775, the confluence of the Fibonacci 61.8% one-day and pivot point one-month S1.
The XAU bulls need a firm break above $1780 in order to extend the recovery momentum. That level is the intersection of the SMA5 four-hour, Fibonacci 161.8% one-week and previous high four-hour.
Further up, the buyers are likely to face an uphill battle amid a dense of resistance levels around $1800, above which the previous month low of $1803 could be tested.
On the flip side, immediate support is seen at $1765, where the previous low one-hour coincides with the pivot point one-day S1.
Sellers would then retest the seven-month lows at $1761, opening floors towards $1756. That level is the meeting point of the Fibonacci 161.8% one-day and pivot point one-day S2.
The pivot point one-day S3 at $1747 could be the last line of defense for the XAU bulls.
The Technical Confluences Indicator shows that gold is attempting a bounce from multi-month troughs, heading towards the major resistance at $1775, the confluence of the Fibonacci 61.8% one-day and pivot point one-month S1.
The XAU bulls need a firm break above $1780 in order to extend the recovery momentum. That level is the intersection of the SMA5 four-hour, Fibonacci 161.8% one-week and previous high four-hour.
Further up, the buyers are likely to face an uphill battle amid a dense of resistance levels around $1800, above which the previous month low of $1803 could be tested.
On the flip side, immediate support is seen at $1765, where the previous low one-hour coincides with the pivot point one-day S1.
Sellers would then retest the seven-month lows at $1761, opening floors towards $1756. That level is the meeting point of the Fibonacci 161.8% one-day and pivot point one-day S2.
The pivot point one-day S3 at $1747 could be the last line of defense for the XAU bulls.