Gold has become volatile and still residing inside the ranges of $1,800 to $1,755 area. Gold bears are holding the bearish momentum below $1,800 psychological area. Can the bears push the price down in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
May 5, 2021, | AtoZ Markets – Gold price declined today morning during the Asian session against the U.S. Dollar. Gold is currently trading around $1,777 price area and trying to push lower. The bulls pushed the price higher after bouncing from the $1,755 to $1,760 support level, but failed to sustain the bullish pressure over $1,790 to $1,800 psychological resistance area. As per the current price action, the price may face strong support around $1,775 to $1,780 area in the coming days.
Gold Bears Holding as the Resistance Level Working Strongly
XAU/USD is currently residing near $1,777 price area and trying to decline further. However, the price is still residing over the dynamic level of 20 EMA on the daily chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold bears are holding the momentum and currently trading around $1,777 area. As per the current price action, if the bears push the price further lower and had a 4-hour bearish candle close below $1,780 to $1,775 area, the price may decline towards $1,760 to $1,755 area in the coming days. On the contrary, if the price climbed higher and had an impulsive bullish candle close above $1,775 to $1,780 area, the price may recover upward towards $1,790 to $1,800 area again in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Moreover, the Stochastic Oscillator lines are currently residing above the oversold level 20 and may have a bullish crossover. It indicates that the bulls may regain momentum in the process.
XAU Still Indecisive Inside the Range
According to the daily chart, Gold bears are holding the momentum as $1,800 to $1,790 resistance area working strongly. As per the current price action, if the price can break below $1,760 to $1,755 support area with an impulsive daily bearish candle, the bears may push the price lower towards $1,700 to $1,680 area in the process. Alternatively, if the price pushes higher and breaks over $1,790 to $1,800 area with an impulsive daily bullish candle, the bulls may regain momentum and push the price upside towards $1,840 to $1,850 area in the coming days.
Image: Gold Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price higher. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Also, the price broke over the Kumo Cloud with a daily bullish candle, which indicates that the bulls may regain momentum in the days ahead.
To conclude, as the price broke over the Kumo Cloud on the daily chart, there is a high chance that the bulls may regain momentum. An impulsive daily breakout is needed to identify the definite momentum in the coming days.