Gold jumped higher from $1500 area, the Bulls may take over the market again. XAU Bullish trend retraced deeper towards the Fibo 78.6 level. Let’s check Gold Technical Analysis for more levels and insights.
March 16, 2020 | AtoZ Markets – Gold started the week with a Bullish gap near $1575 area and filled up successfully pushing lower towards $1525. The price is currently quite corrective and volatile after Gold jumped higher from $1550 area. The Bulls may take over the market if Gold can break above $1550 area in the coming days.
Gold price rose today in Asian session, after the Federal Reserve cut interest rates, and announced a $700 billion bond-buying program over the weekend. The Fed announced to reduce the interest rate to 0% – 0.25% last Friday. The U.S. Central Bank will buy $200 billion of agency-backed mortgage securities and $500 billion worth of Treasuries, and it will be starting with a $40 billion purchase today.
Fed Chairman Jerome Powell said, “We will maintain the rate at this level until we’re confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals.”
Gold Jumped Higher but Struggle Continues
The price is of Gold is currently residing near $1545 area after Gold jumped higher from $1500 support. After fill-up the Bullish gap, Gold is struggling to recover further higher. The Bulls may soon take over the market if the price can break above the resistance area.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently trading at $1545 area and facing resistance at $1550. If the price can break above $1550 resistance area, the Bullish pressure may continue further higher with the target of $1600.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line. It may pull the price higher as Mean Reversion but the upward pressure may not be longer as Bearish bias persists. On the other hand, the MACD indicator lines are residing below 0.00 level and the Bullish cross over may in the making.
XAU Bullish Trend may Recover Higher
According to the Daily chart, XAU is currently residing near $1545 area and trying to push higher. After Gold jumped higher from $1500 support area, the price became corrective and volatile. If the Bulls can have a daily close above $1550 area, the Bullish trend may continue further higher with the target of $1700 key resistance.
Image: Gold Daily Chart
Furthermore, Gold Bullish trend retraced down towards Fibo 78.6 psychological level and bounced higher. The dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. It is currently indicating a certain chance of pushing upward reverting back to the Mean. Additionally, the Stochastic Oscillator lines Bullish cross over is in the making while residing below 20 level. As per the indicators, it is highly probable that the Bulls may take over the market in the coming days.
To conclude, Gold Bears may show some Weakness despite the recent strong Bearish momentum. If the Bulls can have a daily close above $1550 area, there is a high chance of Bulls may recover higher.