Gold has become volatile, but still holding the bullish bias above $1900 psychological area. Gold bulls to take charge above $1910 area again? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
September 10, 2020, | AtoZ Markets – Gold is currently trading around $1942 area and trying to decline. However, the price broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong resistance around $1950 area in the coming days.
Gold was consistent on Thursday morning during the Asian session after a quick ascent short-term. A decline in the dollar and an unpredictable stock market circumstance set up for the underlying ascent. Moreover, a convention in U.S. tech stocks helped the valuable metal’s ascent during the last meeting, pulling it upward from a low of $1,927.20 to a short-term high of $1,959.35. The dollar fell because of expanded gains in the Euro after the European Central Bank (ECB) evolved confidence in the E.U’s recuperation outlook, adding momentum to gold’s rise.
Gold Bulls to Take Charge as the U.S. Dollar Fall Again
Gold is currently residing near $1942 area and trying to push downside. The price is also broke above the Kijun line and the Tenkan line on the intraday chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold bulls to take charge and currently trading around $1942 area. As per the current price action, if the price can have an impulsive 4-hour candle close below $1950 area, the bears may regain momentum and push the price down towards $1910 area in the coming days. Alternatively, if the price breaks above $1950 area with an impulsive 4-hour bullish candle, the bulls may sustain the bullish pressure towards $2000 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 a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
XAU Bulls Are Optimistic
According to the daily chart, Gold bulls to take charge as the price had a strong bullish candle close above $1910 area. As per the current price action, if the price can have an impulsive bullish candle close above $1950 area, the bulls may push the price higher towards $2000 area as a first target. The second target will be $2075 key resistance if the price break above $2000 area in the coming days.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price. It may act as a strong support if the price breaks above it with a daily close. Besides, after bouncing from the Bollinger Bands lower band, the price had a daily bullish close above the middle band. It indicates that bulls may recover higher in the days ahead. Also, the MACD lines are currently residing above 0.00 level and may have a bullish cross over.
To conclude, after retracing more than fifty percent of the recent bullish trend, the bulls showing signs of further continuation. A daily close is required to identify the definite momentum in the coming days.