Gold bulls pushed the price higher aggressively and reached a record high in the last 20 years. Gold bears regained momentum after rejecting a $1980 key resistance area. Will bears sustain the bearish pressure? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
July 28, 2020 | AtoZ Markets – Gold is currently trading around $1930 area and trying to decline further. After breaking the $1800 resistance level, XAU bulls have pushed the price higher impulsively and created a new high. As per the current price action, XAU may retrace down towards the dynamic level of 20 EMA in the coming days.
Gold prices surge to a record high on today during the Asian session, supported by a debilitating dollar that is driving interest for the safe-haven Gold. Moreover, Gold value has been on a steady move in recent months as the COVID-19 pandemic has kept on spreading and Sino-U.S. relations have worsened.
Gold Bears Regained Momentum After Hitting All-Time High
XAU is currently residing nears $1930 area and trying to push downside. Currently, the price of Gold is facing support on the dynamic level of 20 EMA on the intraday chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold bulls regained momentum and currently trading around $1930 area. As per the current price action, the price may decline towards $1900 area in the process. So, if the price reaches $1900 area and bounces higher with a 4-hour bullish candle, the bulls may recover towards $1980 key resistance area again. Alternatively, if the price breaks below $1900 area with an impulsive 4-hour bearish candle, the bears may sustain the bearish pressure towards $1850 support area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line. The dynamic level may act as a strong support to push the price upside. Besides, the Kijun line may work as a confluence of the dynamic level of 20 EMA.
XAU May Revert Back to the Mean
According to the daily chart, Gold bears regained momentum and trying to push downward. As per the current price action, if the price can have an impulsive daily bearish close below $1980 area, the bears may sustain the bearish pressure towards $1900 as a first target. The second target will be $1850 if the price breaks below $1900 in the days ahead.
Image: Gold Daily Chart
In addition, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price down as a Mean Reversion. Besides, the RSI line is currently residing above the overbought level 70 and trying to push down. It indicates that the bears may sustain the bearish pressure further in the process.
To conclude, Gold bullish trend has gained a huge amount of pips in just a few weeks as investors are optimistic about safe haven. A daily close is required to identify the definite momentum in the coming days.