Gold in Sidelines may Retrace lower towards $1560 area before continuing the Bullish Trend. As the price remains above $1550, the Bullish Bias may continue further. Let’s check Gold Technical Analysis for more levels and insights.
January 28, 2020 | AtoZMarkets.com – Gold pushed higher quite impulsively recently which lead the price to reside above $1560. Moreover, the week opened with a Gap higher around $1580 which is currently looking forward to fillup in the coming days.
Gold recently gone cold and entered the consolidation phase after reaching $1580. As per previous expectations, Gold may reach $1600 in the coming days. Gold already hit 7 years higher above $1600 on early January due to spike from U.S. and Iran tension. As the tension faded, the Gold managed to sustain the Bullish momentum along the way.
Currently Gold is consolidating at the edge of $1580 which may retrace lower ahead of Federal Reserve Meeting and Funds Rate decision. As per expectations, Federal Funds Rate may remain unchanged at 1.75% which could lead Gold to regain volatility and push higher. As the U.S. economic outlook has bee quite favorable, Rates may rise again which can support the upcoming gains on Gold. Before the ultimate push higher, the Gold price may push lower towards $1560 again and retest it as support.
Gold to Retrace lower towards $1560
Gold is currently correcting and consolidating at the edge of $1580. The Weekly Open Gap is still unfilled and with current Bearish pressure certain retrace towards $1560 may lead the price lower to find confluence with the dynamic levels.
As the price broke above the corrective range resistance at $1560, the price managed to sustain the Bullish Momentum. The dynamic level 20 EMA, Tenkan and Kijun line has managed to carry the price higher after the break. According to 4 hour Chart, the price is residing a bit far from the dynamic levels which might result price to revert back towards the dynamic levels before pushing higher.
image: Gold 4 Hour chart
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Gold Bullish Bias still strong and thriving
As per current consolidation in the 4 hour chart, the price is pushing lower with certain Bearish pressure. After the break above the Kumo Cloud, current price position is indicating certain retrace lower towards $1560 may occur. MACD is currently creating a Bearish cross on the signal line which may confirm the retrace lower.
The Chikou Span is still indecisive but indicating further upside pressure in the making. Certain retrace lower towards $1560 is currently taken as positive gesture by the investor. Bulls are ready to get in with more strong Bullish Bias in the market. As the price manages to bounce higher after certain downward pressure, Gold may reach $1600 very soon.
To Conclude, Gold’s Bullish Bias is still quite strong despite the current consolidation. The price may push lower along the way but ultimate target is still at $1600 which may retest sooner than expected.