Gold bulls have regained momentum after bouncing from $1,790 to $1,800 support level. Gold climbed over $1,825 price area as the U.S. Federal Reserve didn't give a timeline for its tapering plans in its most recent strategic decision. Will the price continue further higher 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.
July 29, 2021, | AtoZ Markets - Gold price rose today morning during the Asian session against the U.S. Dollar. After an extended period of volatility, the bulls found support around $1,790 to $1,800 price area and strike upside quite impulsively and broke above $1,810 to $1,815 intraday resistance level. XAU is currently trading around $1,825 price area and trying to recover further. As per the current price action, the price may face strong resistance around $1,820 to $1,840 price area in the coming days.
Gold Climbed Over as the Dollar Index Dropped
XAU/USD is currently residing near $1,825 price area and trying to climb further upside. However, the price also broke above the dynamic level on the daily chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold climbed over and currently trading around $1,825 price area. As per the current price action, the price may recover higher towards $1,830 to $1,840 price area in the process. So, if the price rejects $1,840 to $1,830 resistance area with an impulsive bearish candle, the bears may regain momentum and push the price down towards $1,815 to $1,810 price area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
XAU May Continue Further Upward
According to the daily chart, Gold climbed over as the bulls are optimistic. As per the current price action context, if the price climbs further and breaks above $1,830 to $1,840 price area with a daily bullish candle, the bulls may continue further upside towards $1,860 to $1,870 price area in the process. On the contrary, if the price rejects $1,840 to $1,830 price area with a daily bearish candle, the bears may regain momentum and push the price down towards $1,800 to $1,790 price area again in the coming days.
Image: Gold Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong support to push the price upward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands' upper band is still holding the price as strong resistance.
To conclude, as long as the price residing over the dynamic level, there is a high chance that Gold may climb further higher. A daily close is needed to identify the definite momentum in the coming days.