Gold Disregards USD Rally, Trades Bullish at the Highest Top in 7 Years

Gold Disregards USD Rally, Trades Bullish at the Highest Top in 7 Years

XAUUSD Price Analysis – February 21

Gold resumed its advance at the beginning of the European session on Friday and jumped to new seven-year peaks, reaching $ 1,636 level. The spread of coronavirus is also of concern, as it has strongly affected investor sentiment and triggered a new wave of trade to avoid risk.

Key Levels
Resistance Levels: $1,655, $ 1,640, $1,625
Support Levels: $ 1,611, $ 1,595, $ 1,585

XAUUSD Long term Trend: Bullish

The yellow metal advanced to a fresh seven-year high of $ 1,636.59 level since breaking the prior peak at $ 1,625 level. The price of gold is currently holding on long bulls in the sequence from $ 1,550 level. And puts pressure on resistance turned support at $ 1,625 level, the violation of which exposes the level of technical expansion past the $ 1,636 level (fresh high).

The warning that the bulls are losing strength on the new dollar growth has outbid the daily RSI, while the bullish momentum is fading. Correctional dips beneath the $ 1,600 level are anticipated. An offer of better buying opportunities exits as its limited to $ 1,590 (close to $ 1,550 / $ 1,611). The increase in the moving average of 13 around ($ 1,585, also about 50% of the pullback) marks key support, the breakdown of which can put the bulls on hold.

XAUUSD Short term Trend: Bullish

Earlier in the Asian session, gold rebounded by 200 points, but there is no top to the cap. In case it recovers to the levels of $1611-15, buyers can take advantage of the fall and aim at the zone of $1640-55.

On the 4-hour time frame, it may eventually register a rollback. The deepest pullback that the pair can approach is the level of $ 1,611, but if we do not see profit-taking, the price may not reach there. Therefore, most likely, traders should pay attention and buy a dip.

Instrument: XAUUSD
Order: Buy
Entry price: $1,625
Stop: $ 1,611
Target: $1,640

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.