Gold bulls have regained momentum after bouncing from $1,750 to $1,760 support level. Gold surged over $1,800 psychological resistance area. Will the price recover further upside in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
May 12, 2021, | AtoZ Markets – Gold price dropped today morning during the Asian session against the U.S. Dollar. Gold is currently trading around $1,833 area and trying to push higher. After bouncing from $1,750 to $1,760 support area, the bulls pushed the price upward impulsively and broke over $1,800 to $1,810 significant event level. As per the current price action, the price may retrace downside towards $1,810 to $1,800 area in the coming days.
Gold Surged Over as the Overall Bias Is Still Bullish
XAU is currently residing near $1,833 area and trying to push upside. However, the dynamic level of 20 EMA is still holding the price as strong support on the intraday chart.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold surged over and currently trading around $1,833 area. As per the current price action context, if the price push higher and rejects $1,840 to $1,850 area again with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards $1,820 to $1,800 support area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. However, the bears may regain momentum if the price can break below the dynamic level of 20 EMA in the days ahead. Moreover, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that the bears may regain momentum in the process.
XAU May Revert Back to the Mean
According to the daily chart, Gold surged over as the overall momentum is still bullish. As per the current scenario, the price may retrace downward towards $1,810 to $1,800 area in the process. So, if the price retraced towards $1,810 to $1,800 support area and bounced higher with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards $1,840 to $1,850 area as a first target. The second target will be $1,890 to $1,900 key area if the price can break above $1,840 to $1,850 area in the coming days.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Along with this, the price also broke above the Kumo Cloud, which indicates that the bulls may continue the bullish bias further in the days ahead.
To conclude, after an extended period of volatility, the price has successfully broken over $1,800 to $1,810 resistance level. As the overall momentum is bullish, there is a high chance that Gold may continue further higher after a downside retracement in the coming days.