Gold moved higher above the $1700 as bears failed to hold the price below $1695 support levels. Can It Break Above $1750?Can Gold recover higher and reach $1800? Let’s check the Gold’s Technical Analysis to find more levels and insights.
May 4, 2020, | AtoZ Markets – Gold bearish pressure was non-volatile and impulsive last week towards the downside but it failed to hold the price below the $1695 level. On the long term basis, Gold recovered almost After the price bounced higher from $1450 during mid-March. Though the price had some pullbacks, it could not violate any dynamic supports.
After the impulsive bearish pressure in Gold, there was a rebound on Friday after President Trump threatened new tariffs against China. However, most experts agreed that the movement might have been expanded due to the thin holiday trade.
Overall the gold price is driven by both short-term traders and long-term investors. The focus for short term investors is towards the effect of COVID-19 on gold and stimulus packages for long-term investors.
Gold Rejected the $1695 Support Level
Gold has been in a consistent bullish during the COVID-19 outbreak as demand as a safe haven currency. While the stock market, forex market, and crypto market have lost significant value, Gold remains optimistic.
image: Gold H4 chart
According to the 4-hour chart, Gold moved lower after reaching $1750. Later on, the price rejected the $1670 support level and moved above the $1700 level again. As bears failed to hold the price below the $1695 support level, the price may continue higher in the coming trading session. Moreover, the price is supported by the dynamic level of 20 EMA around the $1700 area. Therefore, the price may test the $1715 level again, and any 4-hour candle close above the $1715 level would be potential for the price to test the $1750 level again.
Moreover, the MACD histogram moved to the bullish zone along with a bullish crossover in MA’s. As a result, a further increase in the MACD histogram towards the bullish side may indicate an upcoming bullish pressure in the price.
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Gold May Reach The $1750 Level
Gold has been bearish as it failed to sustain above $1715 levels. As a result, the price fell with impulsive bearish pressure last week. However, at the closing of the week, the price turned back to the green zone with a bullish daily close above the $1695 support levels.
image: Gold Daily Chart
According to the daily chart, the price successfully rejected the $1695 support level as bulls managed to have a daily close above it. Currently, the price is supported by the dynamic level of 20 EMA and edging higher. Therefore, there is a higher possibility that the price will continue higher in the coming days with the target of $1650 level.
So, the main challenge for Gold is to overcome the $1615 level with intraday strength above it. Otherwise, a bullish rejection from the $1715 level might make the current bullish scenorio questionable. In that case, a daily close below the $1695 may force the price to test $1670 level again.
To Conclude, XAUUSD rejected the bearish pressure and managed to hold the price above $1700 level. As a result, the price has a higher possibility of testing the $1750 level in the coming days until it breaks below the $1695 level impulsively.