Gold has become volatile and corrective while residing inside the ranges of $1750 to $1700 area. Gold sustains above $1700 area as COVID-19 pandemic second wave hit China. Can Gold break above $1750 area? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
June 17, 2020, | AtoZ Markets – Gold is currently trading around $1730 area and trying to recover higher. After a fake bearish break out below $1700 area, XAU bulls impulsively push the price higher. As per the current price action, Gold may face resistance around $1750 area in the coming days.
Gold price up today during the Asian session as a new Coronavirus pandemic wave in China pushed buyers towards safe-havens. Besides, XAU price decline a little bit during the New York session after the U.S. retails sales for May climbed at $17.7% from a record of 16.4% slump in April, which happened because of COVID-19 lockdowns, according to the data. Furthermore, U.S. Gold Futures up by 0.5%, or $9.30 at $1736.50 per ounce and Spot Gold up by 0.1%, or $2.16, to $1727.21 by 18:32 GMT.
Gold Sustains Above as Investors Are Seeking for Safe Havens
XAU is currently residing near $1730 area and trying to climb higher. Gold sustains above the dynamic level of 20 EMA on the daily chart, which may push the price further in the coming days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently residing around $1730 area and trying to bounce higher from the dynamic level. As per the current price action, if the price can have a 4-hour bullish impulsive close above the dynamic level, the bulls may push the price higher towards $1750 in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support to push the price higher in the process. Besides, the MACD lines are currently residing above the 0.00 level and may have a bullish intersection. It indicates bulls are still present in the market may strike higher. The histograms are also gradually moving upward, which indicates bears are losing the momentum slowly.
XAU Bulls Are Optimistic
According to the daily chart, Gold sustains above the uptrend line and currently trading around $1730 area. As per the current price action context, if the bulls can have an impulsive bullish close above the dynamic level of 20 EMA, the price may reach higher towards $1750 area in the process.
Image: Gold Daily Chart
So, if the price rejects from $1750 resistance area, the bears may regain momentum and decline towards $1700 again. Alternatively, if the price can break above $1750 area with a daily bullish close, the bulls may recover higher towards $1800 area in the days ahead.
Moreover, 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 carry the price and help the bulls to break above $1750 area in the process. The Kijun line and the Tenkan line may work as a confluence of the dynamic level.
Besides, the Kumo cloud is also residing below the price and widen. It may hold the price as strong support. Also, the Stochastic Oscillator lines are residing above the middle level 45 and trying to bounce higher from the uptrend line. It indicates bulls are gaining momentum may climb higher.
To conclude, Gold has recovered its earlier losses and sustains above $1700 area. A daily close is required to find the definite momentum in the coming days.