Gold price rose yesterday during the New York session and broke $1815 resistance area. Can Gold reach $1900 key resistance area after breaking above $1815? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
July 21, 2020, | AtoZ Markets – Gold is currently trading around $1820 area and trying to recover higher. After bouncing from $1795 area, the bulls pushed the price higher quite impulsively and had a daily close above $1815 area. As per the current price action, Gold may retrace back to the Mean in the coming days.
Gold climbs up on Tuesday morning in Asia, get a boost from the possibility of more stimulus packages from both the United States and Europe. However, discussion over a further round of financial stimulus measurement is in progress in the U.S. Congress, with some prior measures terminating toward the end of July. Furthermore, European Union leaders, at last, agreed on a EUR750 billion ($857.979 billion) stimulus plan prior in the day at the EU Summit.
Can Gold Reach 2011’s Key Level as the U.S. Economy Is Under Pressure?
Gold is currently residing nears $1820 area and trying to push upside. After an extended period of consolidation, bulls are able to regain momentum and broke above 2012’s high.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Can Gold reach higher as the price is currently residing near $1810 area? As per the current scenario, if the price can have a 4-hour bullish impulsive candle close above $1820 area, the bulls may push the price upward towards $1850 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price upward in the days ahead. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level of 20 EMA in the process.
XAU Bulls Are Optimistic
According to the daily chart, Gold is currently residing near $1810 area. Can Gold reach 2011’s key area? As per the current price action, if the price can have a daily bullish close above the last candle high, the bulls may recover higher towards $1850 area as a first target. The second target will $1900 key resistance area if the price breaks above $1850 in the coming days. Alternatively, if the price reaches $1850 resistance level and has a daily bearish close, the bears may regain momentum and decline towards $1815 area in the days ahead.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price back to the Mean. Besides, the MACD lines are currently residing above 0.00 level and may have a bearish intersection. It indicates that bears may regain momentum for a while in the days ahead. Also, the histogram is currently residing above 0.00 level and gradually sloping down, which is also an indication of upcoming bearish momentum.
To conclude, a break above $1815 key resistance area indicates that the bulls are still in the market. A daily close will help to identify the definite momentum in the coming days.