Gold price consolidating inside the ranges of $1750 to $1700 area from an extended period. Gold strike higher after bouncing from $1700 area as the protest flame out all over the U.S. Can XAU recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
June 2, 2020, | AtoZ Markets – Gold is currently residing around $1740 area and trying to climb further. The price broke above the dynamic level of 20 EMA on the daily chart. As per the current price action, XAU has become quite volatile on the intraday chart as the nearest resistance is few pips away.
Gold price strike higher today during the Asian session as investors are worried about the ongoing protest over the death of 46-year-old African American, George Floyd. In this Coronavirus pandemic crisis, the protest may harm the U.S. economy badly. Moreover, the protesters burning the vehicles on the streets, looting the stores and firing the oil stations.
Gold Strike Higher as Investors Are Worried About the U.S. Economy
XAU is currently residing near $1740 area and trying to recover higher. Moreover, the dynamic level of 20 EMA is carrying the price on the daily chart, which is a pre breakout scenario.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently trading around $1740 area and trying to push higher. Moreover, Gold strike higher and break above the Kumo cloud on the 4-hour chart. As per the current scenario, if the price can break above the higher high and closes with a bullish impulsive candle, the bulls may push the higher towards $1760 in the process. In addition, if the price reaches $1760 area and rejects, the bears may push the price down towards $1725 again.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and Tenkan line. The dynamic levels may work as strong support to push the price higher. Besides, the Chikou Span also broke above the Komu cloud, which is a good indication of further continuation. Moreover, the MACD lines are residing above the 0.00 level, which is also a good indication of further bullish pressure.
XAU to Reach Bullish Channel Resistance
According to the Daily chart, Gold strike higher above $1725 area and currently trading around $1740. As per the current price action, if the price can break above $1760 area with a daily close, the bulls may push the price higher towards the bullish channel resistance around $1780 area. It should be noted that the $1760 area may work as strong resistance also.
Image: Gold Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price higher. Besides, the MACD lines are currently residing above 0.00 level and may have bullish cross over in the process.
To conclude, Gold has achieved around 450 pips in just past three days. XAU has the potential to recover further in the coming days as the U.S. economy came under pressure because of the COVID-19 and ongoing protest.