Gold Struggles pushing higher breaking $1585 resistance area with daily close. The price recently rejected off the $1985 area with strong Bearish momentum. Let’s check Gold Technical Analysis for more levels and insights.
January 31, 2020 | AtoZMarkets.com – Gold is currently residing below $1575 as well as the Kumo Cloud support. The impulsive Bearish Pressure born after the price rejected off the $1585 managed to sustain the downward momentum. As the price remains Bearish, it may reach $1570 support area before any Bullish intervention is seen.
Gold’s sudden impulsive Bearish pressure is a result of WHO easing the Coronovirus issue. Gold gained momentum as the Coronavirus hit China recently and easing the issue. So, WHO ease lead investors to divert away from the yellow metal commodity.
The Bullish Bias in Gold is still strong as it resides above $1550 area despite the recent strong Bearish momentum. Until the Coronavirus issue does not find a strong solution, Gold may regain the Bullish momentum and reach $1600 price area.
Gold to Find Support at $1570 and Push Higher
Gold has been quite non-volatile and impulsive with the recent Bearish momentum. It leads the price to push lower from $1585 towards $1570 currently. Though the price broke below the dynamic levels, a Trend line support at $1570 may hold the price higher.
image: Gold 1 Hour Chart
According to the 1-hour chart, the price is heading lower towards the trend line support despite the strong Bullish trend in place. The price turned volatile as the WHO’s announcement about the ease of the Coronavirus issue. Technically, the price may find support at $1570 with confluence from the trend line.
The dynamic level 20 EMA, Tenkan and Kijun line is residing above the current price position, which might hold the price as resistance. MACD is currently showing no sign of Bullish Divergence which might lead to certain corrections until any Bullish trend confirmation takes place. As per the current scenario, the Bears are still strong with no sign of upcoming Bullish pressure, but strong bounce off the $1570 may inject Bullish momentum again. Gold at trend line support may push higher.
Gold may Retrace Lower than Expected
image: Gold Daily Chart
According to Gold Daily chart, The price formed a strong Bearish rejection candle off the $1585 area. As per current price action, Gold may push lower towards $1550-60 and find dynamic support to continue pushing higher towards $1600. Currently, there is no strong sign of Bearish Divergence in MACD, but MACD lines are sloping lower since the price created Double Top around $1600 area.
If the price manages to continue the 20 EMA, the Bullish bias may continue further in the coming days. Certain retracement lower in the process may strengthen the upcoming Bullish momentum.
To conclude, Gold struggling to push higher above $1585 may lead to certain retrace as low towards $1560, but the Bullish bias is still strong with target towards $1600.