Gold climbed higher after breaking the correction phase during the New York session yesterday. Gold bulls continue to recover higher – can reach $1700? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 10, 2020 | AtoZ Markets – Gold is currently trading around $1680 area after breaking above $1670 resistance level. Besides, after bouncing from $1450 key support area, Gold price became quite impulsive. Moreover, XAU/USD has recovered almost 90% of the recent drawdown amid the Coronavirus pandemic.
Gold price became impulsively bullish after Fed Chairman Powell announced $2.3 trillion to prevent job-killing Coronavirus, which took the Gold price an eight-year high. This trillion-dollar stimulus package will support the risky corner of the financial markets, which has been damaged by the pandemic. Moreover, the U.S. jobless claims surged for the third week, which rose by 6.6 million to total about 17 million jobs lost in just less than a month.
On the other hand, Gold Futures up by 2.9%, at $1732.95 a troy ounce, while the Spot Gold was rose 2.1%, at $1678.55 an ounce. Besides, Silver Futures also rose 3.7%, to $15.78 an ounce at their highest in nearly a month, and Platinum Futures rose 1.5%, to $744.45.
Gold May Now Retrace to the Dynamic Level
Gold is currently trading around $1680 area and may retrace down towards the dynamic level. After an extended period of bullish momentum, the price requires a retracement before Gold bulls continue higher in the coming days.
Image: Gold 1 Hour Chart
According to the 1 Hour chart, XAU is currently residing near $1680 area and trying to decline. After breaking above $1670 area, the price became volatile and corrective, which may now retrace down soon. As per the current scenario, if the price comes down to $1670 area and bounce, Gold bulls may continue higher towards $1700 in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Kijun line and the Tenkan line. The dynamic levels may now work as a strong support to push the price further. Besides, the MACD lines are residing above the 0.00 level, which may sustain further there in the process.
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XAU to Finally Reach $1700 Price Area
According to the Daily chart, the price is currently trading around $1680 area after an impulsive breakout above $1670. The bulls quite aggressively pushed the price higher, which took the price to March 9’s high. As per the current price action context, if the price reaches $1700 key resistance area and rejects, the bears may push the price lower toward $1670 again.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing far below the price, which may pull the price as Mean Reversion in the coming days. Besides, the Stochastic Oscillator lines are residing near the overbought level, which may now have a bearish cross over.
To conclude, Gold has been quite non-volatile and impulsive, which may be going to recover 100% of the recent drawdown. So, if the price rejects $1700 key resistance area, the bears may regain momentum in the days ahead.