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Gold Price Hits $1750 Area - Will XAUUSD Break Resistance?

Gold Price Hits $1750 Area - Will XAUUSD Break Resistance?

Gold has become quite non-volatile and impulsive after bouncing from $1700 area. Gold broke above the psychological level $1750, can the bullish trend sustain towards 2012’s high? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis. 

May 18, 2020, | AtoZ Markets – Gold is currently trading around $1760 area and trying to retrace down.  Moreover, XAU broke above $1750 area quite aggressively and had an intraday close. As per the current scenario, Gold may continue its bullish momentum further, but the price may back to the mean for taking retracement in the days ahead.

Gold price rose today during the Asian session and continuing its gains from last week to reach its highest level since October 2012. Moreover, investors are taking an interest in Gold as the U.S. – China relationship has turned sour, as well as other fundamental factors. Furthermore, Peter Navarro, White House Trade Advisor, was the latest U.S. official to rise the blame game after suggested that China sent “hundreds of thousands of Chinese on aircraft to Milan, New York and around the world to spread the Coronavirus after hiding it from the world for two months.”

On the other hand, U.S. President Donald Trump said that “I’m “not thrilled” with the stage one U.S. – China trade deal reached in January.” Despite that, Larry Kudlow, National Economic Council Director said last week, “The two countries were still working to implement the deal.”

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Gold Broke Above as Investors Are Taking Advantage of U.S. – China Trade Deal

XAU/USD is currently trading around $1760 area after Gold broke above $1750. Moreover, after an extended period of bullish pressure, Gold may retrace down before continue higher in the process.

Gold Broke Above

Image: Gold 4 Hour Chart

According to the 4-hour chart, XAU is currently residing near $1760 area and trying to push lower. As per the current price action, if the price can have a 4-hour bearish close below $1765 area, Gold may push down towards $1750 in the coming days.

Moreover, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line and Tenkan line. The dynamic level of 20 EMA may pull the price down back to the mean. The Kijun line and Tenkan line may work as a confluence of the dynamic level. Besides, the RSI indicator line is residing above the overbought level and sloping down. It indicates that bears may regain momentum for a while.

XAU May Retrace Down to the Mean

According to the daily chart, XAU is currently residing near $1760 area and facing resistance at $1765. Moreover, Gold broke above $1750 quite impulsive last week and may now retrace down towards the uptrend line. So, if the price can have a daily close below $1765 area, the price may retrace down towards the uptrend line around $1730 area. In addition to this, if the price reaches $1730 area and has a daily bullish close above it, the bulls may sustain the bullish trend towards $1800 in the coming days.

Gold Broke Above

Image: Gold Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing far below the price. It may pull the price down as Mean Reversion. Besides, the MACD lines are currently residing above 0.00 level and had a bullish cross over. It indicates bulls are still present in the market.

To conclude, Gold gained a massive amount of pips last week and broke above $1750 as investors are showing interest in this safe-haven. As the overall bias is still bullish, Gold needs a daily close below $1765 area to take retracement in the coming days. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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