Early in the American session, Gold is trading around 2,035.45, above the 200 EMA, and above the 21 SMA showing optimism. The instrument is likely to continue rising in the coming hours until reaching the top of the uptrend channel around 2,045 - 2,047.
Gold could find strong resistance around 2,036. It is the level that gold has tried to break since January 18 but without success. On the other hand, in case gold reaches the resistance zone of 2,045 - 2,047, it could be seen as a signal to sell because gold is showing overbought signs according to the eagle indicator.
In case gold falls below 3/8 Murray and below the 200 EMA, we could expect a bearish acceleration and the XAU could cover the GAP it left around 2,018.45. The metal could even reach the psychological level of $2,000.
We believe that gold could return to 2,020 - 2,010 levels in the coming days. For this, we should sell only below 2,045. The eagle indicator is giving an extremely overbought signal which supports our bearish strategy.
