FX.co ★ Analysis of Gold for May 18,.2020 - Strong upside pressure and first target at the price of $1.746 reached. Potential for test $1.790.

Corona virus summary:

The French president Emmanuel Macron and German chancellor Angela Merkel will present a joint plan to spur EU recovery from the coronavirus crisis, after weeks of debate over how to deploy billions of euros needed to quickly end a painful recession.

Europe is just beginning to emerge from the lockdowns to halt the outbreak, which has taken a huge bite out of national economies and raised the prospects of damaging recessions that could last for months.

But despite widespread recognition that the hardest-hit countries will be unable to repair the economic damage on their own, divisions among EU members on how to craft an overall response have hampered comprehensive action so far.

The bloc has pledged to muster €500bn in emergency funding, and the European Commission is hoping to propose a budget that could be used to unleash stimulus worth one trillion euros.

Technical analysis:

Gold has been trading upwards. As I expected, the Gold traded higher and reached my first target from last week at the price of $1,746. There is the strong upward momentum and I still see further upside movement towards my second target at $1,790.

Trading recommendation:

Watch for pullback on the 1H or 4H time-frame for the further upside movements towards the level of $1,790.