Gold has become impulsive and non-volatile and reached near nine years high. Gold to break above $1800 key resistance area in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
July 8, 2020, | AtoZ Markets – Gold is currently trading around $1800 area and trying to climb higher. After bouncing from $1750 support area, XAU has aggressively pushed the price upward. As per the current scenario, Gold may face strong resistance around $1800 psychological level in the coming days.
At present, Wall Street is encountering odd occasions. The stocks are detonating on positive thinking about a potential monetary bounce back. Yet, investors are still stressed over the expanding threat of the second wave of coronavirus cases in the United States. Moreover, the value of Gold soared above $1800 an ounce representing its most significant level since September 2011. In view of the fundamentals, it appears as though it is creeping toward the record high of over $1900. In 2020 alone, XAU has gained almost 19%.
Gold to Break Above as Investors Are Optimistic to Recover Higher
XAU is currently residing near $1800 area and trying to recover higher. The price is currently residing near a very crucial psychological level, Gold to break above?
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold to break above as the price is currently residing near $1800 area. As per the current price action, if the price can break above $1800 area with an impulsive bullish candle close, the bulls may push the price upward towards $1850 area in the coming days. Alternatively, if the price rejects $1800 area with a bearish 4-hour candle close, the bears may decline towards $1780 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as a strong support to push the price upside. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. Besides, the RSI line is currently residing near overbought level 70. It indicates bears may regain momentum in the days ahead.
XAU Bullish Trend May Sustain Further
According to the daily chart, Gold to break above as the current bullish trend is quite impulsive. As per the current price action, if the price can have a daily bullish close above $1800 area, the bulls may push the price higher towards $1850 area as a first target. Apart from this, the second target will be $1900 area if the price breaks above $1850 area in the coming days.
Image: Gold Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below from the price. It may pull the price back to the Mean, or become a support to push the price upside in the process. Also, the Stochastic Oscillator lines are currently residing near the overbought level 80 and may have a bearish intersection.
To conclude, in this Coronavirus pandemic second wave Gold has gained a tremendous amount of pips. A daily close will help to identify the definite momentum in the coming days.