Gold price fell during the Asian session after extending yesterday’s losses in the expectation that Russia might move from the big buyer to possible seller. Gold Futures was down by 0.13% to $1595 but managed to recover from that fall. According to the current price action, can Gold make it higher towards $1700 price area? What are the charts and technical indicators saying? Read more to find further insights into today’s Gold Technical Analysis.
April 1, 2020 | AtoZ Markets – Gold is currently trading at $1590 area and trying to push higher. XAU price is under pressure from recent weeks as the Coronavirus situation is worsening day by day. Moreover, Countries are extending the lockdown period to prevent the spread of COVID-19 as the death toll is increasing at a rapid rate.
Will Gold Make It Higher Despite the Correction?
Gold is currently residing near $1590 and trying to break above $1600 area. The price did push lower towards $1570 area but still have certain Bullish bias to continue higher.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $1590 area and trying to push higher. Gold broke below $1600 support level but the price was held by the Kumo Cloud as support. According to the current price action, if Gold breaks above $1600 area and have an impulsive Bullish close, the Bulls may take the price higher towards $1645 in the days ahead. Alternatively, if the price pushes lower and breaks below the $1570 area, the price may decline further towards $1550.
Furthermore, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and Tenkan line. In this scenario, the price needs to break above the dynamic level to continue the Bullish bias in place. To contrast, a rejection from the dynamic level may lead the price further lower. Besides, the MACD indicator lines are residing above 0.00 level and may intersect each other as a Bullish crossover which may also add to the confluence.
Are XAU Bulls Still Present in the Market?
According to the Daily chart, Gold price broke below $1600 yesterday with an impulsive Bearish close. The price retested very important event-level $1570 area and also Fibo level 50 recently. As per current price action, if the price breaks above $1600 area and have an impulsive daily Bullish close, the Bullish trend may continue higher towards $1700 in the days ahead.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may hold the price as support. The Stochastic Oscillator lines had a Bearish cross over above-overbought level 80 and sloping lower towards the rising trend line. If the line reaches lower towards the trend line and have a Bullish cross over, it will indicate further up move in the coming days. As per the current scenario, The market is volatile and indecisive until a daily close above $1600 sets the stage for further up move in the process.
To conclude, Despite the recent Bearish pressure, Gold Bulls are still present in the market. An impulsive daily Bullish close above $1600 is required to recover higher.