Gold Continuing Bullish Pressure Breaking $1560 Resistance area with a daily close. The price found confluence from the dynamic level as well. Let’s check Gold Technical Analysis for more levels and insights.
February 7, 2020 | AtoZMarkets.com – Gold is currently heading higher above $1560 after having a daily close recently. As per preceding trend in place, consecutive Bullish pressure along with support from dynamic level may lead further upward momentum. As the Gold Bullish trend continues, the price may reach $1600 area in the coming days.
Gold managed to regain momentum ahead of U.S. non farm payroll report to publish today. Though the Employment report has forecast of having better result but turn around may lead to further gains on the Gold side. As U.S. and Asian equity market strengthen recently, Gold saw certain downturn.
Equity market volatility has been impacting the investor sentiment which lead investors to divert to Gold again. Gold is currently attracting investors to sustain the momentum which can lead Gold higher to $1600. As the price found technical confluence, further upside pressure is more probable.
Gold Bullish Pressure to head towards $1600 area
Gold has been pretty strong with the Bullish momentum since it bounced off the $1450 area. The price pushed higher consistently and had target to head towards $1600 area. Though the price retested $1600 after the Bullish rally but could not sustain. As the price retraced back towards $1535, it was expected to reach $1600 again but it did not happen. The price rotated back lower after reaching $1592 and currently consolidating above $1560.
image: Gold Daily Chart
According to Daily chart, the price has been quite impulsive with the Bearish pressure since it rejected off the $1592 area. The price recently found support at $1550 and managed to push back higher above $1560 currently. As the price pushed higher earlier from $1535, there was not confluence from the dynamic level.
Gold Bulls found Confluence to push higher
After the recent Bearish momentum, the price reverted to the Mean 20 EMA and continuing it’s Bullish pressure. According to MACD, the price is still under Bearish Divergence measures but not quite strong to make the price dip lower.
As per current price action, the price is heading higher but may find certain volatility along the way higher towards $1600. Moreover, high impact U.S. economy reports like Non-Farm payroll, Unemployment Rate and Hourly Earning to be pubished today, certain spike may be observed. A daily close today will confirm upcoming Bullish pressure for the Gold in the coming days.
To conclude, Gold is set to push higher towards $1600 as it remains above $1550 with a daily close. A break above $1560 has attracted Bulls continuing the Bullish Pressure along the way.