Gold has become impulsive and broke above the psychological level $1950. Gold bulls strong above $1950 area. May sustain further in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
September 1, 2020, | AtoZ Markets – Gold is currently trading around $1990 area and trying to push upward. After bouncing from $1900 psychological support level, the bulls pushed the price higher and had a daily close above $1950 area. As per the current price action, XAU may face strong resistance around $2000 area in the coming days.
Gold rose today morning during the Asian session, expanding on its gains as the dollar debilitated to its least levels in years. Moreover, the dollar drooped to its insignificant level since May 2018, in the repercussions of U.S. Central Bank, Vice Chairman Richard Clarida developing the Fed’s arrangement move on inflation declared a week ago by Fed Chair Jerome Powell. The more extensive degree for the Fed to keep benchmark rates lower for longer observed investors back out from the greenback.
Gold Bulls Strong as the U.S. Dollar at Its Lowest Levels in Years
Gold is currently residing nears $1990 area and trying to recover higher. The price also broke above the dynamic level of 20 EMA on the daily chart and held the momentum above it for an extended period.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold bulls strong and currently residing near $1990 area. As per the current price action, if the price can break above $2000 resistance area with an impulsive bullish candle close, the bull may sustain the bullish pressure towards $2070 area in the coming days. Alternatively, if the price rejects $2000 area with an impulsive bearish candle close, the bears may regain momentum and decline towards $1950 area again in the days ahead.
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 upside. Besides, the Kijun line and the Tenkan line my work as a confluence of the dynamic level.
XAU May Break Its Recent Records
According to the daily chart, Gold bulls strong may continue the bullish trend further. As per the current price action, if the price can break above $2000 area with an impulsive daily candle close, the bulls may sustain the bullish bias towards $2070 area as a first target. The second target will $2200 area if the price can break above $2070 area in the coming days.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price higher. Besides, the MACD lines are currently residing above 0.00 level and may bullish intersection. It indicates that bulls are trying to hold the bullish momentum further. Also, the RSI line is currently residing above the oversold level 30 and gradually rising upward. It also indicates the bullish continuation.
To conclude, after retracing more than fifty percent of the recent bullish trend, Gold found support and climbed higher. A daily close is required to identify the definite momentum in the days ahead.