Gold price declined against the U.S. Dollar during the Asian session. Gold extended volatility above $1850 psychological support level. Will decline further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
September 28, 2020, | AtoZ Markets – Gold is currently trading around $1853 area and trying to push downside. Gold faced strong bearish pressure around $1865 area and closed below the dynamic level of 20 EMA on the 1-hour chart. As per the current price action, XAU may face strong support around $1850 area in the coming days.
Gold price fall with doubt fore of Tuesday’s U.S. presidential election discussion between President Donald Trump and Democratic candidate Joe Biden impacting the yellow metal. Along with the discussion between Trump and Biden, investors are additionally looking to whether the U.S. Congress will agree on the most recent stimulus measures. House Speaker Nancy Pelosi stayed hopeful that the Democrats and Republicans could arrive at an arrangement soon, including that discussions between the different sides were proceeding.
Gold Extended Volatility Over the U.S. Political Uncertainty
XAU is currently residing near $1853 area and trying to decline. However, the price may find support at the 100 simple moving average on the daily chart in the days ahead.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold extended volatility and currently trading around $1853 area. As per the current price action, if the price can break below $1850 support area with an impulsive bearish candle, the bears may sustain the bearish pressure towards $1800 area in the coming days. Alternatively, if the price bounces higher with an impulsive bullish candle close above $1850 area, the bulls may recover higher towards $1900 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. The bulls may regain momentum if the price can break above the dynamic level. Besides, the MACD lines are currently residing below 0.00 level and had a bullish intersection. Also, the MACD lines are gradually moving upward, which indicates that bulls may regain momentum in the process.
XAU Bulls Are Still Optimistic
According to the daily chart, Gold extended volatility but still residing above the 100 SMA. As per the current price action, if the price bounced higher from 100 SMA and had a daily bullish candle close above $1850 support, the bulls may regain momentum and strike higher towards $1900 area as a first target. The second target will be $2000 area if the price breaks above $1900 in the days ahead. On the contrary, if the price breaks below $1850 area with an impulsive bearish candle, the bears may continue the bearish pressure towards $1800 in the process.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may pull the price higher as a mean reversion. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish cross over. It indicates that bulls may regain momentum in the process.
To conclude, as long as the price remains above $1850 support zone, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.