Gold price is on the back foot on Tuesday after witnessing back-to-back rallies following the stunning US employment data. The renewed uptick in the US Treasury yields is boosting the demand for the greenback across the board, weighing on the non-yielding gold. Although looming US-Russian tensions over Ukraine and Sino-American tensions could help put a floor under the bright metal. Looking ahead, attention remains on the US inflation data due for release later this week for fresh insights on Fed’s tightening plans.

Read: Gold back to inflection point

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price retracement is challenging the critical support area near $1,818, where the Fibonacci 38.2% one-day converges with the SMA100 four-hour.

If that support is breached then sellers will aim for the previous week’s high at $1,815.

The pivot point one-day S1 at $1,811 will come to the rescue of bulls should the pullback extend in gold price.

The last resort for buyers is seen at $1,809, strong support comprising of the Fibonacci 23.6% one-week, Fibonacci 38.2% one-month and SMA5 one-day.

On the flip side, immediate upside needs validation above the confluence of the pivot point one-week R1 and Fibonacci 23.6% one-day at $1,821.

The next critical resistance is placed at the weekly highs of $1,824, above which the Fibonacci 61.8% one-month at $1,826 could be tested.

A fresh upswing will kick in above the latter, opening doors towards $1,830 – pivot point one-day R1.

Here is how it looks on the tool

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About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

This article was originally published by Fxstreet.com.Read the original article here.

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