Early in the American session, Gold (XAU/USD) is trading around 1,750 below 1,759 (200 EMA) and around the 8/8 Murray. In the European session, the metal tried to consolidate above the 200 EMA but failed. Now it is showing signs of a strong technical correction and it is likely that in the next few hours the price will fall towards the 21 SMA located at 1722.
Investors are eyeing the highly anticipated US November NFP jobs report. The technical outlook for gold price points to a slightly bullish bias in the near term. But first, a technical correction should occur below since the asset is showing levels of exhaustion.
In case gold falls below 1,750 (8/8 Murray), it will be a clear signal to sell with targets at 1,722 (21 SMA). The eagle indicator is giving a negative signal and has reached a level of 95 points, which represents the extremely overbought market.
A daily close above 1,760 could resume the bullish cycle and the price could reach 1,781 or even 1,812 (+2/8 Murray).
On the downside, the 1,722 level (21 SMA) constitutes strong support around 1,700, which is the psychological level and the 6/8 Murray support at 1,687. Below this area, the trend could reverse towards 1,620.
