Gold bulls have regained momentum and after an extended period of bearish pressure. Gold strike above $1950 psychological level. Will bulls continue the bullish bias in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
August 17, 2020, | AtoZ Markets – Gold is currently trading around $1955 area and trying to climb further. The price also broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, XAU may face strong resistance around $1965 area in the coming days.
Gold price rose today against the U.S. Dollar during the Asian session, over the sign of slow economic recovery. Moreover, U.S. retail sales report published last Friday recorded a lower-than-anticipated development of 1.2% month-on-month, contrasted with the 1.9% expected in forecasts. Japan’s GDP report published before in the day likewise indicated a bigger than anticipated constriction of 7.8% quarter-on-quarter among April and June, contrasted with the 7.6% predicted, denoting the greatest contraction on record. At an annualized rate, Japan’s economy shrunk by 27.8%.
Gold Strike Above as the Global Economy Is Recovering Slowly
XAU is currently residing near $1955 area and trying to recover higher. Furthermore, the price also broke above the Kijun line and the Tenkan line on the intraday chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold strike above and currently trading around $1955 area. As per the current scenario, if the price can have a 4-hour impulsive bullish candle close above $1950 area, the bulls may push higher towards $1965 area. Besides, if the price can break above $1965 area, the bulls may sustain the bullish pressure towards $2000 area in the coming days. Alternatively, if the price reaches $1965 area and rejects, the bears may regain momentum and decline towards $1865 area again in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may work as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
Gold Bulls Are Optimistic May Recover Further
According to the daily chart, Gold strike above and currently residing near $1955 area. As per the current price action, if the price can have a daily bullish candle close above $1950 area, the bulls may sustain the bullish pressure towards $2000 as a first target. The second target will be $2075 area if the price can break above $2000 in the days ahead.
Image: Gold Daily Chart
Also, the dynamic level of 20 EMA is currently residing below the price, which may act as strong support in the process. However, after retracing towards Fibo level 38.2, the price of Gold strike above and had a daily close above Fibo level 50. It indicates that bulls may recover further in the coming days. Besides, the MACD lines are currently residing above the 0.00 level, which indicates that bulls are still present in the market.
To conclude, after gaining a massive amount of pips, Gold retrace down quite aggressively, but the bullish trend is still active. A daily close is required to identify the definite momentum in the coming days.