Gold Broke Above $1800 Key Resistance – Will Recover Further?


Gold impulsive bullish trend reached nine years high and gained almost 600 pips in a row. Gold broke above $1800 key resistance area and maintained the price above it. Will XAU recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis. 

July 10, 2020, | AtoZ Markets – Gold price dropped today during the Asian session respecting nine years high. However, the safe-haven rush managed to repose the Gold supported around $1800 pinnacle as new Coronavirus cases increased mistrust about the U.S. economic recovery. Gold is currently trading around $1800 area and trying to climb higher. After breaking above $1800 area, the price retraced down and found support on the dynamic level of 20 EMA on the intraday chart. As per the current price action, $1800 psychological area may act as strong support in the coming days.

Gold Broke Above as Investors Are Optimistic About Safe Have

XAU is currently residing near $1800 area and trying to bounce higher from the dynamic level. Moreover, the price is also found support on the Kijun line may strike higher in the coming days.

Gold Broke Above

Image: Gold 4 Hour Chart

According to the 4-hour chart, Gold broke above $1800 area and again came down for a retracement. As per the current price action, if the price can have an impulsive bullish candle above $1800 area, the bulls may push the price upward towards $1850 area in the coming days. In contrast, if the price breaks down with an impulsive bearish candle close, the bears may push the price downside towards $1750 area in the process.

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 strong support to push the price higher. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. Alternatively, if the price breaks below the dynamic level, the bears may regain momentum in the process. Besides, the MACD lines are currently residing above 0.00 level and had a bearish cross over. It indicates bears may regain momentum for a while.

XAU May Retrace Back to the Mean

According to the daily chart, Gold broke above the key resistance area with a daily close and currently trading around $1800. As per the current price action, the price may retrace down towards the dynamic level of 20 EMA in the coming days.

Gold Broke Above - AtoZ Markets

Image: Gold Daily Chart

So, if the price can have a daily bearish close below $1800 area, the bears may decline towards the dynamic level, which is around $1750 area. Alternatively, 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. The second target will be $1900 area in the process.

Furthermore,  the dynamic level of 20 EMA is currently residing below the price. It may pull the price back to the Mean. Also, the RSI line is currently residing below the overbought level 70 after rejecting it, which indicates bears may regain momentum shortly.

To conclude, Gold has gained a tremendous amount of pips in this new COVID-19 pandemic second wave situation. A daily close is required to identify the definite momentum in the coming days. 

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