Gold took deeper retracement towards $1670 area and bounced higher as expected earlier. Gold continues the climb towards $1800 after certain retracement. What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 21, 2020 | AtoZ Markets – Gold is currently trading around $1695 area and trying to push higher. Moreover, the price retraced almost 78% of the recent bullish bias and had a daily bullish close above $1670 area. As per the current price action, Gold may climb further higher in the coming days, if the price sustains above $1670 area.
Gold price rose on Tuesday during the London session as the U.S. Crude Oil price historical drop overnight made USD weaker. Moreover, Gold Futures has gained as much as 1% as investors are crowded to XAU as Wall Street shares tumble. Besides, the Futures were down by 0.32% at $1705.70 by 4:50 AM GMT as the Asian stocks also tumble following this news. Though the two usually move opposite directions from each other, Mondays’ Reuters poll predicted that the rising demand for Gold maybe embracement by strengthening the U.S. Dollar and weak retail consumption as the Coronavirus continues to harming the global economies.
Gold Continues to Climb May Recover Further in the Process
Gold is currently residing near $1695 area after the price found support at $1670. The current price action context is quite non-volatile and impulsive, which may push the price further in the coming days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently residing near $1695 area and trying to strike higher. The price found support on the rising trend line and also held by the Kumo Cloud. As per the current price action, if the price can break above the dynamic levels and had a 4-hour bullish close, the bulls may push the price higher towards $1750 in the days ahead.
Furthermore, the dynamic level of 20 EMA is residing near the current price, along with the Kijun line and Tenkan line. The dynamic levels may work as a strong support to push the price higher, if Gold can break above it. Moreover, the MACD lines are residing below 0.00 level and may have a bullish cross over. If that happens, bulls may gain momentum further in the coming days.
XAU Investors Are Optimistic
According to the Daily chart, Gold is currently residing near $1695 area after a daily bullish close. As per the current price action, if the price can have another impulsive bullish close above $1690 area, Gold may recover higher towards $1800 in the process.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support to push the price higher in the days ahead. Besides, the MACD lines are residing above the 0.00 level, which indicates bulls may hold the current bullish momentum further.
To conclude, Gold has been quite non-volatile when other commodity markets are sinking. As long as the price sustains above $1670 area, there is a high chance that Gold may reach higher towards our target area.