FX.co ★ Trading Signal for GOLD (XAU/USD) for August 21-22, 2023: buy if breaks above $1,900 (2/8 Murray - triple bottom)

Early in the American session, gold is trading around 1,889 below the 21 SMA located at 1,892 and continues to move within the downtrend channel formed since July 31. Gold is trading around 1,885, the level which was hit in March 2023. Gold left a GAP in February 2023 at 1,867. If the bearish force accelerates and gold falls below 1,880, it could cover this GAP.

On the other hand, in case gold consolidates above the psychological level of 1,900 and breaks sharply above the downtrend channel, it will be seen as a positive sign and the instrument could reach the 200 EMA located at 1,930.

If XAU/USD consolidates above 1,885 in the next few days, it could be seen as a signal to buy only in case gold breaks above 2/8 Murray located at 1,906.

Then, we could expect a recovery of the yellow metal and its price could reach 1,930 and eventually, 6/8 Murray at 1,968.

Our trading plan for the next few hours is to buy above 1,885 (triple bottom) with the target at 1,892. With a daily close above 1,900, we can continue buying with the first target at the 200 EMA.