Gold price is trading around the resistance zone 5/8 Murray at 1,828. There is another strong resistance at the top of the uptrend channel around 1,830.
The 1H chart shows a rising wedge pattern formation. This technical figure represents a bearish move. A sharp break below 1,826 could accelerate gold's decline towards the 200 EMA located at 1,812 and to the bottom of the uptrend channel at 1,805.
The most important event this week is in the inflation data on Thursday. The Consumer Price Index is expected to reach 7.3% (yearly). The data will be decisive for the Fed's determination to resort to aggressive monetary tightening.
An increase in the US dollar interest rate of 50 basis points could affect the strength of gold and it could fall towards the level 1,750.
In the short term, we expect gold to make a technical correction towards the zone of 1,812. The eagle indicator has reached the extremely overbought zone around 95-points. This is a clear sign that gold could drop in the coming days to resume its uptrend.
Our trading plan for the next few hours is to sell below 1,826, with targets at 1,812 and 1,805. The eagle indicator supports our bearish strategy.
Support and Resistance Levels for February 9 - 10, 2022
Resistance (3) 1,849
Resistance (2) 1,843
Resistance (1) 1,836
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Support (1) 1,819
Support (2) 1,809
Support (3) 1,796
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Scenario
Timeframe H1
Recommendation: sell below
Entry Point 1,826
Take Profit 1,812, 1,805
Stop Loss 1,832
Murray Levels 1,796 (3/8),1,812 (4/8), 1,828 (5/8), 1,843 (6/8)
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