Gold has become non-volatile and impulsive and broke above $1765 area. Gold climbed higher towards the all-time high of last eight years level. What is next? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
June 25, 2020, | AtoZ Markets – Gold is currently trading around $1766 area and trying to recover further. After breaking above $1765 area, the price reached around $1780 area and rejected. As per the current scenario, the price found support on the uptrend line and broke above the dynamic level on the intraday chart.
Gold price rose today during the Asian session as the US economy came again under pressure because of Coronavirus second wave. The U.S states reported that the number of Coronavirus pandemic cases rose with breaking some daily records. Furthermore, the second wave was also threatening to abolish a portion of the ongoing development of reviving the economy.
Gold Climbed Higher as the COVID-19 Second Wave Hit the U.S. Economy Again
XAU is currently residing near $1766 area and trying to recover higher. The price also broke above the Tenkan line and had a daily close above it.
Image: Gold 1 Hour Chart
According to the 1-hour chart, Gold climbed higher and broke above the dynamic level. The price of XAU is currently residing near $1766 area and trying to push upward. As per the current price action, if the price can have a 1-hour impulsive bullish candle close above $1765 area, the bulls may push the price higher towards $1780 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line. The dynamic level may act as a strong support to push the price higher if the price can have a 1-hour bullish close above it. The Kijun line may work as a confluence of the dynamic level. Besides, the price also found support on the Kumo cloud, which indicates bulls may recover further in the days ahead. Also, the Stochastic Oscillator lines are currently residing above the oversold level 20 and may have a bullish cross over.
XAU to Reach $1800 Mark
According to the daily chart, Gold climbed higher towards $1780 resistance area and pushed down and retraced almost 50 per cent. The price is currently residing near $1766 area and trying to climb higher.
Image: Gold Daily Chart
So, if the price can have a daily close above Fibo level 61.8, the bulls may push the price higher towards Fibo level 100, which is around $1780 area. In addition to this, if the bulls can break above the Fibo level 100, the bullish trend may sustain towards $1800 area in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing far below the price. It may pull the price down back to the Mean. Besides, the MACD lines are currently residing above 0.00 level and had a bullish intersection. It indicates bulls are still in the market may strike higher.
To conclude, as the U.S. economy is sinking again because of Coronavirus pandemic second wave, which made the USD weaker. There is a high chance that Gold may reach its record high in the coming days.