March 17, 2020 | AtoZ Markets - Gold has been quite impulsive and non-volatile with the Bearish momentum. The price rejected $1450 key support area and bounced higher. The Gold is currently trading at $1490 area and trying to decline further.
Gold price rose a little higher on the Asian session today following a robust Bearish fall. Gold is currently down below $1500 mark even after the U.S. stock markets worst crashed took place recently. The major equities and indices are facing record loss despite Central Banks trying harder to prevent the recession. Moreover, Spot Gold dropped 1.1% to $1497 an ounce and now around $1490.
Gold Held by Dynamic support but Still Struggling
The price of Gold is currently trading at $1490 area and trying to decline further. XAU became very corrective and volatile after Gold was held dynamic support of 200 EMA. Gold may recover higher if Bulls manages to sustain the momentum.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the price of Gold is currently residing near $1490 area and trying to continue lower. After XAU bounced from $1450 critical support level, the price recover higher. Gold impulsive Bearish trend may pause now. If the price reaches $1450 support area and rejects, the Bulls may take over the market and recover higher towards $1550 area in the coming days.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun and Tenkan lines. The dynamic levels may pull the price higher towards $1550 expected area as Mean Reversion. Besides, the MACD lines are below 0.00 level and Bullish cross over may in the making.
Read More - Oil Struggling below $30 - Will Bears Continue to Dominate further?
Gold Bearish Pressure may slow down
According to the Daily chart, Gold is now trading at $1485 and trying to continue decline. XAU is quite impulsive and non-volatile with the Bearish trend. The price dropped nearly 2500 pips in just two weeks. As per the current price action, the Bulls may recover higher in the coming days. If the price can have a daily close above $1450 support area, the Bulls may take over the market and push the price higher towards $1600 area in the coming days.
Image: Gold Daily Chart
Moreover, Gold held by dynamic support of 200 EMA had a daily close above it yesterday. The 200 EMA may work as a strong support level as it worked before in April 2019. On the other hand, the Stochastic Oscillator's lines are crossing each other upward while residing below level 20. The RSI indicator is also in an oversold position. As per the indicators, there is a high chance of Bulls may take over the market if the Bulls manages to sustain momentum above $1450 with a daily close.
To conclude, Gold Bulls may find strong support at the dynamic level of 200 EMA. Though the overall trend is Bearish, Bulls may take over the market climbing higher in the coming days.