Early in the American session, gold is trading around 2,028.47, above the 21 SMA, and above the 200 EMA. We can see in the chart above that since its fall around 1,984, gold has made a strong technical rebound and is now facing the strong resistance of 2,031. If gold breaks this level, the price could reach 2,062, but it could have difficulties as it is showing signs of exhaustion.
Gold has strong resistance around 2,031. If in the next few hours, XAU trades below this level, the price should face the support of 2,023. Once this support is broken, we could expect there to be a technical correction and gold could reach the psychological level of $2,000.
If gold consolidates above 2,031 in the next few hours, we could expect a continuation of the bullish movement with targets at 2,046 and 2,062. The eagle indicator has been giving a positive signal since February 13. Gold is likely to finally try to break the 2,062 zone.
If in the next few hours gold breaks sharply the bullish trend channel forming since February 13 and falls below 2,019, we could expect a bearish acceleration with targets at the psychological level of $2,000 and the low of 1,985.
