Early in the American session, gold was at 1,811.41 above the 21 SMA and below the downtrend channel formed since February 22. We can see that gold is showing signs of exhaustion, and a technical bounce is likely in the next few hours.
For the last few days, GOLD has been under strong bearish pressure, with a barrier at 1,845 acting as resistance. It is now trading at a key bounce level, and a sharp break above the downtrend channel is likely. We can expect a rally with targets at 1,833 (21 SMA) and the 3/8 Murray at 1,843.
In the event that XAU/USD trades above the 21 SMA (1,810) and above the 2/8 Murray (1,812), it will be seen as a signal to buy.
Conversely, we should avoid buying if it trades below 1,810, which could mean the advance of bearish pressure. In this case, GOLD could reach the psychological level of 1,800 and finally reach 1/8 Murray located at 1,781.
The eagle indicator is giving a positive signal after reaching the 5-point zone on February 24 (representing an imminent rebound). This consolidation that we are seeing over the last few hours could result in a technical bounce only if it trades above 1,812 which will be seen as a signal to buy.
