Gold broke the bullish pennant and climbed higher quite impulsively yesterday. Gold bulls are very optimism may push the price further towards $1800 psychological level. Can 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.
May 15, 2020, | AtoZ Markets – Gold is currently trading around $1735 area and trying to push higher. Moreover, the price becomes quite impulsive and non-volatile after breaking the bullish pennant. As per the current scenario, XAU may surge further but may face resistance at $1750 in the coming days.
Gold Bulls Optimism Surges as Investors Accumulates Further
Gold price rose today morning during the Asian session, after reaching the three weeks high in the New York session. Investors turn into Gold after Chinese industrial production and retail sales data came mixed, as well as U.S jobless claims data of Thursdays. In the meantime, China showed a mixed image of its recovery from the Coronavirus pandemic. Therefore, the industrial production of April increased by 3.9% year on year, which is higher than predicted. Besides, it also showed that the retail sales of the same month rose by 7.5% year on year, against forecasts of a 7% drop.
On the other hand, U.S. President Donald Trump said that he was very unhappy with China’s failure to contain the virus. He also added, “They should have never let this happen. So I make a great trade deal, and now I say this doesn’t feel the same to me. The ink was barely dry, and the plague came over. And it doesn’t feel the same to me.”
XAU Bullish Trend May Sustain Further
According to the daily chart, XAU is currently trading around $1735 area and Gold bulls are optimism to recover further. Moreover, the price found support at the dynamic levels and climb higher quite aggressively. As the per the current price action, if the price break above $1750 area with a daily bullish close, the bullish trend may sustain towards $1800 in the coming days. Alternatively, if the price rejects from $1750 area and closes below it, the bears may take over the market and push down toward $1700 area, or at least towards the dynamic levels.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line and Tenkan line. The dynamic levels may work as strong support to push the price higher. Besides, the MACD lines are currently residing above 0.00 level and maybe having a bullish intersection.
To conclude, in this COVID-19 pandemic situation Gold achieved a good amount of pips recently. As the U.S. unemployment claims are increasing day by day, investors are showing interest in Gold rather than USD. Gold may climb further but needs to break above $1750 area in the coming days.