Early in the American session, Gold (XAU/USD) is trading around 1,928.07 within a downtrend channel formed on the 4-hour chart from June 19 and within a main downtrend channel formed since May 26.
XAU/USD could find an opportunity to bounce if it falls towards the 1,920 area, a key level that could give gold a reversal since it has acted as support on previous occasions.
On the other hand, if the bearish pressure prevails, we could expect the instrument to reach 1,915, a level that coincides with the bottom of the downtrend channel, which could be an opportunity to buy if the price consolidates above this level.
Additionally, a sharp break above the daily pivot point around 1,931 could set the stage for a quick climb to the area of the 21 SMA located at 1,940. Finally, the metal could reach the 200 EMA located at 1,958.
Our trading plan for the next few hours is to wait for gold to fall to about 1,920 to buy with targets at 1,931 and 1,940. Besides, we could buy if it breaks and consolidates above 1,931. The Eagle indicator is giving a positive signal on the 4-hour chart. On the daily chart, it reached the oversold zone which indicates a technical rebound in the coming days.
