Gold failed to break above $1750 area and pushed down towards last month’s low. Gold broke below the psychological area $1700 and had a daily impulsive bearish close. Can XAU decline further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
June 8, 2020, | AtoZ Markets – Gold is currently trading around $1695 area and trying to recover higher after an impulsive bearish pressure. XAU also broke below the bullish channel support with a daily bearish candle and also the dynamic level of 20 EMA. As per the current price action, Gold may retrace towards $1700 area in the coming days.
Gold price rose today during the Asian session and recovering the losses of the previous session. Investors step back from the safe-haven during the previous session after U.S. unemployment rate goes beyond they think. Moreover, Non-farm payrolls rose by 2.5 million, and the unemployment rate for May was 13.3%, which was below from April’s 14.7%.
Gold Broke Below as the U.S. Economic Report Came Positive
XAU is currently trading around $1695 area and trying to push higher. After an extended period of bullish momentum, XAU may now change its bias in the process.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently trading around $1695 area after bouncing from $1670. As per the current price action, Gold may recover higher towards the dynamic level, which is around $1700 area. So, if the price reaches $1700 area and rejects, the bears may push the price down towards $1670 area again in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may pull the price back to the Mean and may hold the price as strong resistance. Besides, the Chikou Span also broke below the bullish channel, which is a good sign of further bearish continuation.
XAU Bearish Pressure May Sustain Further
According to the daily chart, Gold broke below $1700 support level and currently residing near $1695 area. As per the current price action context, if the price can have a daily close below $1700 area after a retracement, the bears may regain momentum and push the price down towards $1650 area in the coming days.
Image: Gold Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance if the price reaches towards $1700 area. Also, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. It indicates that bears are quite strong and may hold the bearish momentum in the coming days.
To conclude, after gaining a tremendous amount of pips Gold broke below $1700 area, which was also a very crucial support zone. A daily close below $1700 area may indicate further bearish pressure.