Early in the American session, gold (XAU/USD) is trading above the 200 EMA and above the 21 SMA on the 4-hour chart.
Gold is showing a technical consolidation and it is likely to accumulate strength in order to overcome the resistance at 1,941.
The intraday bias is bullish. As long as gold remains trading above the 200 EMA located at 1,920 it is likely to continue bouncing and could reach 1,945.
A daily close above the downtrend channel that was formed since March 23 could accelerate the upside move and the price could reach the psychological level of 2,000.
On the 4-hour chart, we can see that gold has broken out the symmetrical triangle pattern and is giving a positive signal. It is likely that gold will continue to trade above 1,922 in the next few hours and may reach the zone 1,942.
XAU/USD has a strong barrier at 1,937-1,945. Above this level, the road is clear and the metal could start a confident uptrend and rally as high as 2,070.
On the contrary, if gold consolidates below 1,920 and closes below 1,915 on the daily chart, it could resume a bearish movement and fall to 1,890 and 1,875.
The risk appetite sentiment is weakening, thus boosting the demand for gold as a safe haven. If events surrounding the war between Russia and Ukraine turn negative, it could send investors buying gold and risky assets could fall sharply.
Our trading plan for the next few hours is to buy gold as long as it remains trading above the 200 EMA located at 1,922, with targets at 1,929, and 1,941.
Also, a break above 1,945 could be an additional signal to buy with targets at 1,975 and at the psychological level of 2,000. The eagle indicator is giving a positive signal.
