Gold is trading around 2,332, bouncing above the 200 EMA located at 2,328, and within a downtrend channel forming on the H1 chart.
Gold could find a good technical bounce around 2,330. This move would be seen as an opportunity to buy with the target at the top of the bearish channel around 2,350.
A sharp break of this channel and consolidation above 2,355 could enable gold to resume its bullish cycle. Therefore, the metal could reach 6/8 Murray at 2,375 and finally, the psychological level of 2,400.
In case gold falls below the 200 EMA located at 2,228 and consolidates below this area on the H1 chart, we could expect the bearish acceleration to continue. Eventually, the instrument could reach the psychological level of 2,300. It could even fall towards 4/8 Murray located at 2,250.
We believe that gold could bounce above the 200 EMA in the next few hours, so we will look for opportunities to buy above 2,330. The eagle indicator is approaching the oversold zone. Hence, a technical rebound is likely to occur and we could take advantage of buy positions.
