Gold has become volatile and corrective but still maintained the price above the uptrend line. Gold climbed above $1800 psychological area as Coronavirus second wave fears rise in the United States. Will XAU recover higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
July 14, 2020, | AtoZ Markets – Gold is currently trading around $1800 area and trying to push higher. Gold price declined after breaking above $1800 area on the intraday chart, but bulls are still optimistic. As per the current scenario, the uptrend line may work as strong support in the coming days.
Gold climbed above $1800 area today during the Asia session as Coronavirus fears repose investors away from U.S. Dollar. Gold should keep on ascending higher as the record increments in COVID-19 cases globally will probably compel the U.S. furthermore, European pioneers into highly suggesting more fiscal monetary upgrade is coming. Besides, in the event that the times of the dollar are numbered, Gold value ought to have little trouble in making that run to record high area before year-end.
Gold Climbed Above as the Coronavirus Pandemic Cases Increased
Gold is currently residing near $1800 area and trying to recover higher. Moreover, the price is also remaining above the dynamic level of 20 EMA on the daily chart, which indicates the trend is still active.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold climbed above $1800 area but facing resistance at the dynamic level of 20 EMA. As per the current price action, if the price can have a bullish impulsive close above $1800 area, the bulls may push the price higher towards $1820 area in the coming days. Alternatively, if the price breaks below the uptrend line with an impulsive bearish candle, the bears may decline towards $1780 area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, if the price breaks above it, the bulls may recover further. In contrary, the price may face strong resistance on the dynamic level as well. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and may have bullish cross over from the uptrend line.
XAU Revert Back to the Mean
According to the daily chart, Gold climbed above $1800 area but the price action is quite volatile. As per the current scenario, if the price can have a daily bearish close below $1800 area, the bears may push the price downside towards $1780 area in the coming days. Apart from this, if the price reaches $1780 area and bounces higher, the bulls may strike higher towards $1820 area as a first target. The second target level will be $1850 if the price breaks above $1820 in the days ahead.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down back as a Mean Reversion. Also, the MACD lines are currently residing above 0.00 level and formed a bearish divergence. It indicates that bears may regain momentum from a while.
To conclude, investors are very optimistic about Gold as the U.S. Dollar is weakening because of COVID-19 pandemic. A daily close is required to identify the definite momentum in the coming days.