Gold is indecisive above $1450 area while Bulls are struggling to break higher. XAU became quite volatile and corrective after the price bounced from $1450. Let’s check Gold Technical Analysis for more levels and insights.
March 20, 2020 | AtoZ Markets – Gold Bearish trend paused after the price bounced from $1450 key support level. Gold dropped nearly 100% of the recent gains and managed to hold the price above $1450. Apart from current Bearish bias, the Bulls may stand some chance to strike back again.
Gold price climbed higher today during the Asian session, even investor minimized their risks due to Coronavirus outbreak situation. As the COVID- 19 pandemic is resulting in a Recession, investors are losing hope from Gold’s safe-haven reputation. Furthermore, ECB’s bond-buying program is usually good for Gold, but this support may not last long. Currently, Investors are interested in the U.S. Dollar rather than Gold. As a result, the U.S. Dollar Index is climbing higher despite the current lockdown situation.
Gold Indecisive Above $1450 May Push Higher
The price of Gold is now trading at $1500 area and pushing higher. Gold is indecisive above $1450 area, a Bullish breakout required for further upward pressure. The Bulls may recover higher in the coming days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently residing around $1500 area and trying to break above. The Bulls are currently quite strong with the current momentum but Gold is still indecisive above $1450 area. In this case, if the price can break above $1500 area as well as the dynamic resistances, the Bulls may recover higher towards $1550 in the process.
Additionally, Gold is trying to break above the dynamic level of 20 EMA. So, if Gold manages to break above the dynamic level with a 4-hour bar, the Bullish pressure might sustain momentum further. On the other hand, the MACD lines are rising upward gradually, and the histogram volumes above 0.000 level, which is a good indication of Bullish continuation.
Bulls Engulfed Previous Day Price Action
According to the Daily chart, Gold is currently trading at $ 1500 area and trying to climb higher. After an extended period of Bearish bias, the price found support at $1450 area and nearly Engulfed the previous Bearish pressure. In this case, if the Bulls can break above $1500 area with a daily close, the Bullish pressure may sustain further higher towards $1550 area as a retracement.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing far from the current price, along with the Kijun line and the Tenkan line. As a result, the price may revert back higher towards the Mean 20 EMA before continuing the Bearish trend in place. So, if Kumo cloud holds the price after a retracement towards $1550 area, the Bearish trend may sustain further in the future.
To conclude, Gold Bullish pressure is currently quite strong to recover higher. So, if the price reaches higher toward $1550, certain Bearish intervention can be observed which will lead the price to continue the Bearish trend in place.