Gold price indecisive and currently residing inside the ranges of $1940 to $1950 area. Gold volatility increases above $1950 psychological area. Can bulls recover higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
September 14, 2020, | AtoZ Markets – Gold is currently trading around $1945 area and trying to push lower. However, the price is still residing above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong support around $1940 area in the coming days.
Gold price rose today morning during the Asian session in the wake of falling throughout the end of the week. The falling U.S. dollar and retreating U.S. furthermore, European markets gave valuable metal support, with positive Asian markets doing little to flatten the valuable metal’s ascent. In addition, the U.S. tech stocks kept on falling, drove again by NASDAQ, joining with a drop in the dollar to lift Gold to $1,960 throughout the end of the week. However, volatility overtime was moderately drowsy.
Gold Volatility Increased as Investors Are Worried About the Global Economy
XAU is currently residing near $1945 area and trying to decline. Moreover, the Kijun line is also currently residing below the price, which is very strong support.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold volatility increased and currently trading around $1945 area. As per the current price action, if the price can break below $1940 support with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards $1900 area in the days ahead. Alternatively, if the price breaks above $1950 area with an impulsive bullish candle close, the bulls may recover higher towards $2000 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. The dynamic level may act as a strong support to push the price upward. Besides, the Kijun line may work as a confluence of the dynamic level.
XAU May Recover Towards August’s High
According to the daily chart, Gold volatility increased, but the bulls are still optimistic. As per the current price action, if the price can break above $1950 resistance level with an impulsive bullish candle close, the bulls may recover higher towards $2000 area as a first target. The second target will be $2075 area if the price breaks above $2000 area in the process.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price, which may act as a strong support if the price can break above it. Besides, the MACD lines are currently residing above 0.00 level and may have a bullish intersection. It indicates that bulls are trying to regain momentum may climb higher in the days ahead.
To conclude, after retracing more than fifty percent of the recent bullish trend, Gold has become corrective. A daily close may help to identify the definite momentum in the coming days.