Early in the American session, Gold (XAU/USD) is trading around 1,733 after having bottomed out at the 1,727.66 level. The price is bouncing as it is showing an extreme oversold signal.
The low reached this morning coincides with the bottom of the downtrend channel formed since July 16. In the event that gold consolidates above this level, a technical bounce is likely. So, the price could reach the 4/8 Murray zone at 1,750 in the coming hours.
The eagle indicator has reached the extreme oversold zone. In the next few hours, gold is expected to bounce around the 1,727 support and could reach the top of the downtrend channel around 1,749.
