Early in the American session, gold is trading around 2,007.23 with a bullish bias, above the 200 EMA, and above the psychological level of $2,000.
According to the H4 chart, we observe that the XAU/USD has been trading within a bearish trend channel since January 28. In the next few hours, the instrument is likely to reach the top of this channel around 2,020.
On the other hand, if gold falls below the psychological level of $2,000 and below 0/8 Murray, we could expect a continuation of the bearish movement and the price could reach -1/8 Murray around 1,968.
The Eagle Indicator has been giving a positive signal since February 13. If it trades above $2,000, any technical bounce will be seen as an opportunity to buy.
If gold breaks sharply from the downtrend channel, we could expect it to reach the 200 EMA located at 2,024 and could finally reach the 61.8% Fibonacci retracement around 2,035.
Our outlook will remain positive above $2,000 to buy with the target at 2/8 Murray around 2,062.
Below the psychological level of $2,000, our outlook could change and we could see a bearish acceleration towards 1,968 and even towards 1,905 in the short term.
