XAUUSD awaits US CPI for a fresh upswing – Confluence Detector

  • November 10, 2022
  • Gold price is fading the rebound but holds above the $1,700 mark.   
  • The US Dollar resumes its correction but a weak CPI print could revive the downside.
  •  XAUUSD buyers gather strength before the next push higher.

Gold price is posting small gains above the $1,700 mark, as bulls turn cautious ahead of the critical Consumer Price Index (CPI) from the United States. The US inflation data is of utmost significance in determining the US Federal Reserve’s rate hike outlook. A softer US core CPI print is likely to bolster expectations of a 50 bps December Fed rate hike. The monthly US CPI is seen rising to 0.6% while the annualized inflation rate is seen softening to 8.0%. The Core CPIs are likely to ease across the time horizon, suggesting signs of peak inflation. Gold price could resume its uptrend on a softer US CPI-induced renewed US Dollar weakness and a risk rally. Markets are currently pricing a 57% probability of a 50 bps December Fed rate hike.

Also read: Gold Price Forecast: 100DMA appears a tough nut to crack ahead of US Consumer Price Index

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price is facing a wall of stiff resistance levels at around $1,710. At that level, the Fibonacci 38.2% one-day coincides with the SMA10 four-hour.

The next upside target is seen at the previous high four-hour at $1,713, above which a test of the $1,715 level cannot be ruled out, where the Fibonacci 61.8% one-day and SMA100 one-day meet.

Alternatively, a sustained break below the Fibonacci 23.6% one-day at $1,706 will revive the selling momentum toward the previous low four-hour at $1,704.  

The last line of defense for Gold price is seen at the confluence of the pivot point one-month R1 and one-week R1 at $1,703.

Here is how it looks on the tool


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.