Gold Faced Resistance Around $1,875 Area – Is It End of the Bullish Trend?


Gold bulls have regained momentum after bouncing from $1,800 to $1,810 support level. Gold faced resistance around $1,875 key area. Is it the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis. 

May 19, 2021, | AtoZ Markets – Gold price dropped today morning during the Asian session against the U.S. Dollar. Gold is currently trading around $1,852 area and trying to push lower. The price has faced strong resistance around $1,875 to $1,865 psychological event area after an impulsive bullish momentum. As per the current price action context, the price may retrace lower towards $1,845 to $1,840 support area in the coming days.

Gold Faced Resistance as the Price Requires a Downward Retracement

XAU is currently residing near $1,852 area and trying to decline further. However, the bulls have gained almost 650 pips after bouncing from $1,800 to $1,810 support level.

Gold Faced Resistance

Image: Gold 4 Hour Chart

According to the 4-hour chart, Gold faced resistance and currently trading around $1,852 area. As per the current price action, the price may retrace downside towards $1,845 to $1,840 support area in the coming days. So, if the price retraced towards $1,845 to $1,850 area and bounced higher with an impulsive bullish candle, the bulls may recover higher towards $1,865 to $1,875 area again in the days ahead. On the contrary, if the price can break below $1,845 to $1,840 support level with an impulsive bearish candle, the bears may regain momentum and push the price down towards $1,810 to $1,800 area in the process.

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger bands’ middle band may work as a confluence of the dynamic level in the process. However, the bulls may regain momentum if the price can break over the dynamic level in the days ahead.

XAU May Continue the Bullish Bias

According to the daily chart, Gold faced resistance, but the overall bias is still bullish. As per the current scenario, the price may retrace downward towards $1,845 to $1,840 support area in the process. So, if the price retraced towards $1,845 to $1,840 support area and bounced higher with a daily impulsive bullish candle, the bulls may sustain the bullish trend towards $1,865 to $1,875 area as a first target. The second target will be $1,890 to $1,900 key area if the price can break above $1,865 to $1,875 area in the coming days.

Gold Faced Resistance

Image: Gold Daily Chart

In addition, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support in the process. Also, the MACD lines are currently residing above the 0.00 level and gradually moving upside. It indicates that the bulls are still holding the bullish bias and may continue further higher in the days ahead.

To conclude, as long as the price residing over $1,840 to $1,845 support level, the bias will remain bullish. As the overall momentum is still bullish, there is a high chance that Gold may continue the bullish trend further after a downside retracement in the coming days. 

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