Early in the American session, Gold (XAU/USD) is trading around 1,833.64. During the last hours, it has been consolidating above 1,830. If the price settles above the SMA 21 located at 1,836 in the next few hours, it will be considered a signal to buy with targets at 1,845 and 1,864.
Gold remains within the downtrend channel but is showing signs of a possible technical bounce. The metal is likely to reach 4/8 of Murray located at 1,875.
A sharp break above the downtrend channel formed since February 2 could be the signal for a trend reversal and the instrument could reach 1,875 and the psychological level of 1,900.
Conversely, if XAU/USD falls and trades below 1,825, we could expect gold to continue lower to reach the 2/8 Murray at 1,812.
Our trading plan for the next few hours is to buy gold above 1,836 with targets at 1,845 (3/8 Murray), 1,864 (200 EMA), and 1,875(4/8 Murray). The eagle indicator is showing a positive signal which supports our bullish strategy.
