Gold Recovered from Bearish Pressure may push Higher again towards $1600 target area. The price did push lower $1563.50 area but managed to bounce higher to continue the Bullish run. Let’s check Gold Technical Analysis for more levels and insights.
January 30, 2020 | AtoZMarkets.com – Gold regained the Bullish momentum after declining lower towards $1563.50 area recently. The price is again struggling at the edge of $1580 area which if broken above may lead to strong upward pressure with target towards $1600 area.
Federal Reserve recently kept its interest rates unchanged at 1.75%. Therefore, Gold investors gained confidence to push the price higher again. FED stated that due to Global economic and financial developments along with inflation pressures, it is ideal to keep the interest rate unchanged. Moreover, Corona virus crisis also boosted the gains of Gold as safe haven investment currently.
Corona virus affected the growth of overall Chinese economy. It is expected to affect the economy further resulting to Global Market Disruptions. As Chinese economy struggles, Gold, USD, JPY and U.S. treasuries may find more focus of investors leading rise in value.
Gold recovered from Bearish Pressure forming Cup-Handle
image: Gold 1 Hour chart
Gold has been struggling at the edge of $1580 since the start of the week. The week started with a Bullish Gap which was recently filled by the Gold’s Bearish pressure towards $1563.50 as expected. While the price was regaining Bullish Momentum, it was not quite sharp as expected. The price formed a U-Shaped bottom at $1563.50 while pushing higher towards $1580 again.
The price did manage to break above the Kumo cloud while being carried by the dynamic level of 20 EMA, Tenkan and Kijun line. The Chikou Span (Green Line) also broke above the price line which indicates further upside pressure is in the making. Moreover, MACD having no indication of Bearish Divergence along the Bullish move is signalling sustainable Bullish pressure in the coming days. Though MACD lines are residing above 0.00 line but certain correction and retracement towards $1575 area may occur along the way before the price shoots higher.
As per current 1 hour chart formation, the price may form a Cup-Handle pattern as the price retraces towards the Kumo Cloud support and push higher. If the pattern gets confirmation in the coming hours, Bullish run towards $1600 will be more stronger than current expectations.
Gold Higher towards $1600 may find Resistance
image: Gold Daily Chart
Gold found confluence off the Tenkan line recently after the impulsive Bearish daily close. Though the price looked to push lower towards $1550 to $1535 area as per Bearish pressure but immediate Bullish pressure changed the outlook.
According to Daily chart, the price has been quite consistent but slow with the Bullish gains. Gold managed to recover from the Bearish pressure and pushed the price higher. Though the price sustained the Bullish pressure higher, Gold may find strong resistance at $1600 price area. Current driver of the Gold’s Bullish Rally is the fear of Corona virus impacting the global economy. As the virus fear fades, certain correction and Bearish intervention may be observed in Gold.
To Conclude, Gold is quite set to reach the $1600 price area which may act as Resistance along the way. Completion of the Bullish Pattern in the intraday chart will extend the Bullish pressure in the coming days.