Gold Strong Bearish pressure broke below $1560 Support area with a daily close recently. The price is currently heading towards $1535 area again. Let’s check Gold Technical Analysis for more levels and insights.
February 5, 2020 | AtoZMarkets.com – Gold managed to break below $1570 as well as $1560 support area recently with Strong Bearish pressure. The price broke below $1560 with a daily close which indicates further downward pressure in the making. As per current price action, the price may head towards $1535 area again.
Apart from Oil, Gold was quite safer for investors to put their money in. Though Oil and Gold had negative correlation between them earlier, but recently Gold joined the Bearish trend. Gold price pushed lower for 2 consecutive days while engulfing previous consistent Bullish price actions along the way.
As Chinese Central Bank injected 500 Billion Yuan in the economy, Gold faced strong Bearish pressure which may short live according to metal analysts. The Chinese Stock Market closing higher again lead the investors to show some interest despite the Coronavirus calamity.
Gold to Reverse or Retrace?
The price has been quite impulsive with the recent Bearish momentum which successfully broke below $1560 support of Gold. The price is currently retesting the broken support before continuing the upcoming Bearish pressure. As the Bearish bias sustains, the price may head towards $1535 support area as well.
image: Gold 4 Hour Chart
According to 4 hour chart, the price formed certain Bullish pressure after breaking below the support. As a result, the price is currently retesting the support as resistance. The Bears have been quite impulsive with the recent Bearish momentum which may continue to push lower.
The dynamic levels like 20 EMA, Tenkan and Kijun line is residing above the current price area which might act like resistance along the way. As there is no sign of Bullish Divergence in MACD, there is no strong chance of price pushing higher to reverse the trend. Moreover, MACD lines are still sloping downward below 0.00 line and there is no sign of Bullish Crossover at the current market scenario. So, current Bearish trend may continue pushing the price lower towards $1535 area in the coming days.
Gold Bearish Pressure to continue further
image: Gold Daily Chart
According to Daily chart, the price recently Engulfed the previous Bullish price action with strong Bearish pressure. Moreover, the price broke below the dynamic levels like 20 EMA, Tenkan and Kijun line as well. Though the price is pushing higher currently, it still has greater chance to push lower towards $1535 area. As the price reach $1535 support area, certain Bullish intervention can be seen. So, the price heading lower can be short lived and Bulls may regain momentum to push the price higher again.
To conclude, Gold may push lower towards $1535 area as it remains below $1560 resistance. But certain Bullish pressure can be seen as the price reach $1535 support with a daily close.