Yesterday in the American session, Gold reached a maximum of 1,925.79. This area has become a barrier to gold, as it failed to consolidate above. Currently, we can see that gold has stopped around the psychological level of 1,900.
The metal is currently trading at around 1,901. This level coincides with weekly and monthly support and a technical bounce is likely if XAU/USD settles above this area.
In case gold trades above the key level of 1900, it is likely that there will be a technical bounce towards the 21 SMA located at 1,911 or it could even reach the top of the downtrend channel around 1,920.
On the contrary, in case gold falls and consolidates below 1,900 or a makes pullback towards 1,912, we could expect a continuation of the bearish movement and it could reach 8/8 Murray located at 1,875.
The eagle indicator is moving away from the 90-point zone. So, gold could resume its bullish cycle, but if it fails to break above 1,925, it will only be an opportunity to sell.
Our trading plan for the next few hours is to sell below the 21 SMA (1,912) or if gold breaks the psychological level of 1,900 to sell with targets at 1,875 (8/8 Murray).
