Early in the American session, gold (XAU/USD) is trading around 1,835.86 with a strong bearish trend, and with a small gap at 1,849.04 due to last week's closing and opening of this week.
A strong monthly support is located at about 1,830. Therefore, we assume if gold continues its bearish movement, it could find a strong technical rebound at this level and this could give us the opportunity to buy around this area, with the target at the top of the downtrend channel located at 1,860.
On the other hand, in case gold consolidates below 1,830 (monthly support), we could expect gold to continue falling and it could reach 2/8 Murray located at 1,812.
According to the eagle indicator, gold began a strong downward trend on September 20 and has now been under downward pressure for almost two weeks.
Technically, XAU/USD is showing signs of exhaustion. So, we could expect a strong technical correction in the coming days.
Gold fell from a high of 1,947.39 to a low of 1,832 in just 10 days. It means that the overall trend could be bearish for the coming months. However, given the price at oversold levels, we could expect a technical rebound towards 1,863 and 1,885. Then, we could resume selling activity.
Our trading plan for the next few hours is to wait until gold bounces above 1,830 due to the extremely oversold conditions.
The eagle indicator is showing an imminent technical rebound which could be seen as an opportunity to buy around 1,830 with targets at 1,843, 1,849, and 1,863.
