In the American session, Gold (XAU/USD) is trading around 2,413, below the 7/8 Murray, and above the 21 SMA. During the European session, the metal reached a high at about 2,449. Currently, we see that gold is covering the GAP it left at 2,312. There will likely be a technical bounce and gold may resume its bullish cycle and reach 7/8 Murray again around 2,437.
If gold attempts to break through 7/8 Murray and fails to consolidate above this area, it will be seen as an opportunity to resume selling as the eagle indicator signals the extremely overbought market.
The geopolitical data and investor fear is reflected in gold as it is a safe-haven asset. The market is likely to remain volatile over the next few days, so we should be careful when trading as an excessive increase in our risk appetite could harm our capital.
Meanwhile, we will look for opportunities to buy above 2,413. Besides, if gold falls towards 2,393 (21 SMA), it will be seen as an opportunity to buy.
On the other hand, a pullback towards 2,437 will be seen as an opportunity to sell below this area, with targets at 2,393 and 2,375.
Our trading plan for the next few hours is to wait for gold to reach resistance zones above 2,427 towards 2,437. This area will be seen as a signal to sell. The eagle indicator supports our bearish strategy and we believe that gold will make a strong technical correction in the coming days.
