Gold price is breaking correction phase above $1650 and may push higher toward $1688 area soon. Despite the strong Bullish trend, the price may retrace down towards $1630. Let’s check Gold Technical Analysis for more levels and insights.
February 26, 2020 | AtoZMarkets – Gold has been quite corrective after rejecting the $1630 support area. After an extended period of volatility, the Gold is currently breaking the correction phase above $1650. If Bullish pressure sustains further, Gold may reach $1688 area soon.
Gold Price Fundamental Highlight
Gold price rose again after the United States confirmed the first Coronavirus infected community in the country. The Centers for Disease Control and Prevention (CDC) said,” Patient who did not have any detailed travel history or disclosure to another Coronavirus patient, was also infected.
Additionally, the CDC also added that “This cloud may be an instance of community spread of COVID-19, which would be the first time this has happed in the United States.” This news published after President Donald Trump said, “the risk of the virus to Americans is shallow.”
On the other hand, The Coronavirus impact on Global growth will force FED to cut the interest rate. Moreover, the United States stock indexes held their morning highs after Brazil reported its first Coronavirus case. It’s a warning for the whole Latin American countries. The continuously spreading of Coronavirus is a big concern for world economic growth.
Gold Breaking Correction Phase May Retest $1688 Again
The price is currently retracing near $1645 after Gold breaking corrective resistance above $1650 area. Gold became highly volatile and corrective after Gold rejected the $1630 support area. As per current price action, Bullish pressure may continue further with the target towards $1688 again.
image: Gold 1-Hour Chart
According to the 1-hour chart, Gold is currently residing near $1645 and may continue further towards $1688 key resistance after breaking above correction. The dynamic level of 20 EMA is holding the price as a support, and the Kijun line and the Tenkan line are also working as confluence. This is a good sign for Bulls which may take the market higher in the coming days. Additionally, the price is residing inside the Kumo Cloud, and if Gold breaks the Kumo Cloud resistance in the process then it may push higher as expected.
Moreover, the MACD lines are also rising above gradually after Gold touched the bottom at $1630 support area. The histogram volumes are also above the 0.00 line, which indicates further upward pressure may sustain.
Gold Bullish Run May Continue Toward $1700 Area
According to the Daily chart, the price is currently pushing higher after Gold broke the consolidation. After an impulsive and non-volatile Bullish move; Gold was able to retrace down toward the $1630 area. The Kijun line and the Tenkan line are residing below the price, but the dynamic level of 20 EMA is far away from the current price. As a result, it may lead to a certain retrace lower as Mean Reversion.
image: Gold Daily Chart
On the other hand, the MACD lines are residing above 0.00 level from an extended period. Moreover, the histogram volumes are also above 0.00 line, as a confluence of the MACD line. It indicates that Bullish pressure may sustain further which may reach the $1700 target area as well in the future.
To conclude, Gold is now residing near the $1645 area, which may help the Bulls to continue pushing further upward. If price sustains the move higher towards $1688 area, Bullish pressure may continue towards the target area of $1700.