Gold has become quite non-volatile with current bullish pressure and reached near $1760 area. Gold climb above $1750 area as COVID-19 new cases rising rapidly all over the world. Is this dawn of bullish empire? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
June 22, 2020, | AtoZ Markets – Gold climbs above $1750 area quite impulsively on the 4-hour chart. XAU is currently trading around $1745 area while retracing lower. As per the current price action, XAU price may retrace down further towards the dynamic level of 20 EMA in the coming days.
Gold strike higher today against the U.S. Dollar during the Asian session and hit its highest level since May. As Coronavirus second wave hit the global economy again, investors are moving towards safe haven like Gold. Moreover, according to the report of the World Health Organization COVID-19 infection cases increased to 183,020 on this Sunday, with very nearly 9 million worldwide cases as of June 22.
Gold Climbs Above as Investors Are in Fear of Coronavirus New Cases
XAU is currently residing near $1745 area and trying to push down. The price facing support around $1745 area, which acted as strong resistance previously.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1745 area and trying to decline further. As per the current price action, if the bears can break below $1745 area, the bearish pressure may sustain towards $1740 area in the process. So, if the price reaches $1740 area and bounces higher, the bulls may recover further towards $1765 area in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing below the price. It may pull the price back to the Mean. Besides, the Fibonacci level 50 is around $1740 area. So, there is a high chance that the Gold may take fifty per cent retracement before bulls continue higher.
XAU to Reach $1800 Psychological Area
According to the daily chart, Gold climbs above $1750 area and trying to recover further. Moreover, the price found support on the dynamic level of 20 EMA and had a daily bullish close above $1740 area last week.
Image: Gold Daily Chart
As per the current price action, if Gold can climbs above $1765 area with an impulsive bullish daily close. The bulls may push the price higher towards $1800 area 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 a strong support to push the price higher. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. Besides, the MACD lines are residing above 0.00 level and may have a bullish intersection. It indicates that bulls are holding the bullish momentum may strike higher in the process.
To conclude, Gold bulls are optimistic again as the global economy is sinking because of COVID-19 second wave. A daily close is required to identify the definite momentum in the coming days.