FX.co ★ Analysis for Gold 04.21.2020 - Bull flag pattern in creation on the daily time-frame, watch for potential rejection of the support and eventual upside movement towards the $1.737

Corona virus summary:

World Health Organization says evidence that coronavirus came from bats. The WHO said all available evidence suggested the coronavirus originated in bats in China late last year and was not manipulated or constructed in a laboratory. Trump said last week the US was trying to determine whether the virus emanated from a lab in Wuhan in central China.

Singapore extends lockdown after second-wave rise in cases. Singapore, which has been lauded for its initial response to the outbreak, has seen a surge in cases, reporting a record 1,426 new coronavirus caseson Monday, mostly among foreign workers. The city state's prime minister announced a lockdown would be extended by four weeks until 1 June.

Technical analysis:

Gold has been trading downwards most recently. The price tested the level of $1,659. Anyway, based on the daily time-frame gold can still be in the corrective structure and in my opinion bull flag pattern can be in the play.

Trading recommendation:

Watch for potential buying opportunities due to the potential bull flag pattern on the daily time-frame. I see possibility for the upside movement towards the levels at the price of $1,737-$1,745.

MACD oscillator is still shown positive reading the the slow line is slopping to the upside, which is sign that the mid term trend is still upside.

Support levels are set at the price of $1,658-$1,644

Resistance levels are set at the price of $1,697, $1,737 and $1,746