Early in the American session, Gold is trading around 2,018.82, below the 200 EMA, and above the downtrend channel that was broken.
Gold is facing strong resistance around 2,023. A technical correction is likely to follow in the coming hours towards the downtrend channel around 2,007. The metal could even reach the 21 SMA located at 2,004.
If this scenario occurs, a technical rebound could happen that will be seen as an opportunity to buy.
Since February 13th, Gold has been giving a positive signal. After the XAU dropped to the low of 1,984 and made a strong technical bounce, it has been showing a bullish signal since then. If gold breaks and consolidates above 2,023 in the next few days, we could expect it to continue rising and the price could reach 2,031, 2,046, and finally, 4/8 Murray at 2,062.
On the contrary, if gold falls below 2,004 in the next few hours, it will be seen as a signal to sell as the bearish cycle could resume and the instrument could reach the psychological level of $2,000 and the low of February 13, at 1,984.
Gold could turn bullish and continue to climb only if it consolidates above 2,031 in the next few days. Above this area, the outlook remains positive with targets at 2,062 and 2,078.
Conversely, in case gold trades below 2,030, we could see any bounce as a signal to sell with targets at $2,000 and 1,965.
