Gold Bulls Correction above $1560 may Settle down for further upward move with target towards $1600. The price may fluctuate but may sustain pressure. Let’s check Gold Technical Analysis for more levels and insights.
February 12, 2020 | AtoZMarkets.com – Gold is currently residing above $1560 after certain dips and false breakout lower. The price is currently pushing lower again but being above $1560 does indicate the intentions of further upward pressure in the making.
As per our earlier expectation, the price is currently retesting $1560 as support while having Bullish confluence from the dynamic levels. The Bullish bias is still strong has great probability to push higher towards $1600 area again.
One of the main reason behind recent Gold dip is the Federal Reserve Chairman Powell’s recent speech. Recently Powell stated that, U.S. economy is farly resilient against any kind of Virus fight. Though Coronavirus has long-term effects on Global economy but FED may continue it’s current flow for interest rates. As American Job sector and economy is currently stable, U.S. may continue it’s operation despite the Virus breakout alert.
Gold Bulls to Settle above $1560 to Push Higher
Gold has found strong support above $1500 area which may help to sustain the Bullish momentum further. The price having carried by the dynamic levels along the way may push Gold higher towards $1600 again. Gold Bulls Correction above $1560 has greater probability to sustain further upward pressure.
image: Gold Daily chart
According to daily chart, the price is currently residing above $1560 area while being supported by the dynamic level 20 EMA. Though Tenkan and Kijun line is intersecting the current daily candle but Bullish pressure may continue as price remains above $1560. Additionally, the Chikou Span is also intersecting the price candles which have higher probability to break higher. If Chikou Span can break above the price candles, it will act as strong confluence for further upward move. Moreover, Kumo Cloud is getting wider as Support which may help Bulls to push back higher if there is any strong throwback along the way.
Gold Bullish Trend is in a stage of Retracement
The Bullish trend in Gold is still intact without much of deeper throwbacks along the way. The price has been corrective but consistent with the Bullish pressure. The price recently created a Higher low after earlier bounce from $1535 area.
MACD showing no sign of strong Bearish confluence while Histogram squeezing higher may lead the price higher. Though the correction phase is still strong, Bulls may dominate. As the price remains above $1560 area with a daily close, further upward pressure is quite imminent.
To conclude, Gold Bulls have good confluence to push higher while correcting above $1560 area with a daily close. Gold price may fluctuate but Bears will have hard time to take over.