Gold established support at $1455 and the Bulls are ready to strike higher. XAU is currently volatile and corrective while struggling to gain Bullish momentum. Let’s check Gold Technical Analysis for more levels and insights.
March 23, 2020 | AtoZ Markets – Gold is currently trading at $1490 area and trying to break above the corrective phase. After the Asian market opened today, Gold is struggling to break above $1500 area. As per the current price action, Bulls need to break above $1500 impulsively to recover higher in the coming days.
Gold managed to recover a bit from the last week’s massive fall. The price of Gold again emerging as a safe haven, while the USD climbed to record high last Friday. The U.S. Dollar recently challenged Gold’s condition, as Gold always move opposite to USD. Moreover, Gold also gained momentum from the Asian Equity markets, while investors are still worried about the impact of Coronavirus pandemic.
Gold Establish Support May Recover Higher, Soon
The price is currently trading at $1490 area after Gold establish support at $1455. Gold facing resistance at the dynamic level of 20 EMA, a strong breakout above it may help the Bulls to recover higher.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1490 area and pushing lower. The price is declining towards $1480 area while trying to retest the support level again. If the price bounce higher after Gold finds support at $1480 area, the Bullish pressure may continue higher towards $1550.
Apart from this, the dynamic level of 20 EMA is currently residing near the price and holding it as a resistance. Gold needs to break above the dynamic level to recover higher. Moreover, the MACD indicator lines are rising upward, but Histogram is indecisive. On the other hand, Stochastic Oscillator lines are residing above the oversold level 20 while Bullish cross over is in the making. As per the indicators, there is a high chance that Bulls may regain momentum soon.
Gold Bulls to Strike Again
According to the Daily chart, Gold is currently trading at $1490 area and retracing lower. Gold established support at $1455 area and had a Bullish daily close last Friday. The price tested 200 EMA several times, and it failed to break below it. As per the current price action, if the Bulls can have a daily close above $1500 psychological level, the Bullish pressure may sustain higher towards $1700 area in the process.
Image: Gold Daily Chart
On the other hand, the MACD indicator is currently showing Extreme Divergence, which means the Bears have overstretched their power already. As a result, Bulls are currently ready to strike back to push higher. Moreover, the dynamic level of 20 EMA is residing above the current price, which may pull the price higher at least towards $1600 as Mean Reversion.
To conclude, Gold Bulls are quite ready to strike higher. If the price takes over the last daily candle’s high and close above it, the Bullish pressure may sustain further higher in the coming days.