Gold Price Analysis: XAU/USD battles critical $1945 ahead of ECB, levels to watch – Confluence Detector

Gold (XAU/USD) consolidates Wednesday’s rebound, as the bulls take a breather heading into the European Central Bank (ECB) monetary policy decision. The dollar took a hit following a bounce in the Wall Street indices, fuelled by the tech rally.

The yellow metal also cheered the optimism over the US stimulus deal after the Senate Republicans proposed a smaller relief package. All eyes remain on the crucial ECB policy decision for any dovish stance, which could boost the yieldless gold. How is it positioned on the charts?

Gold: Key resistances and supports

Having faced rejection above $1950, gold has returned to the critical $1945 level, a cluster of healthy support levels, including the Fibonacci 38.2% one-month, SMA10 one-day and SMA100 four-hour.

To the upside, the immediate cap awaits at $1950, the previous day high, above which the bulls could eye the pivot point one-day R1 at $1959.

The next upside barrier is aligned at $1964, the Fibonacci 61.8% one-week while the pivot point one-day R2 at $1970 will be the level to beat for the XAU bulls.   

On the flip side, the convergence of the Fibonacci 38.2% one-day and SMA100 on 15-minutes could cushion the downside.

Should the selling pressure accelerate, the next support at $1934 will be tested. That level is the intersection of the Fibonacci 23.6% one-week and SMA5 one-day.

Minor support around $1930 will come into play next, which is the Fibonacci 61.8% one-day. The previous day low of $1920 will then be tested by the sellers.

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With the TCI (Technical Confluences Indicator) tool, you can easily locate areas where the price can find a support zone or resistance zone and make trading decisions. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points each time. If you are a medium- and long-term trader, this tool will allow you to know in advance the price levels in which a medium / long-term trend can stop your travel and rest, where to undo positions or where to increase your position.

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