Early in the American session, Gold (XAU/USD) is trading around 1,788 bouncing slightly after reaching the bottom of the uptrend channel and the bottom of the symmetrical triangle pattern. It is likely that in the next few hours gold will continue to rise only if it consolidates above 1,790 (21 SMA).
Currently, the price of gold is moving higher in anticipation of the US Consumer Price Index (CPI). Some analysts believe that if the actual data is below the market consensus, it could push the XAU/USD price to the level of 1,800 and 1,812 (+2/8 Murray).
In case there is a pullback to the top of the symmetrical triangle around 1,803 or 1,812 (+2/8 Murray) and gold fails to break it, it will be a clear signal to sell with targets at 1,781 (+1/8 Murray).
On the other hand, in case the metal fails to recover and falls below 1,779, this price action will mean a change in trend. For this, we must wait for a break in the uptrend channel and the symmetrical triangle. If this scenario comes true, it could mean a bearish acceleration in gold and it could reach 8/8 Murray located at 1,750 and even the 200 EMA located at 1,746.
Our trading plan for the next few hours is to buy gold above 1,790 with targets at 1,803 and 1,812. Conversely, we can wait for a break below 1,779 to sell with targets at 1,750 and 1,746. The eagle indicator is giving a negative signal, so any technical bounce could be considered an opportunity to sell.
