Early in the American session, gold is trading around 2,323, below the 21 SMA, and below the 200 EMA, going through a strong technical correction after it reached the 50% Fibonacci retracement around 2,380 yesterday during the American session .
Technically, gold is in a downtrend. We believe that if it continues to fall in the next few hours, it could bounce around 5/8 Murray located at 2,312 or it could reach the bottom of the downtrend channel located between 2,304 and 2,298.
Given that the US NFP data weakened gold, it is likely that after a technical correction, we could expect a rebound in the coming days. For this, we should expect gold to consolidate around 2,312 (5/8 Murray) or above the psychological level of 2,300.
In the meantime, we will look for opportunities to sell gold if it continues to trade below 2,339 in the next few hours and we will look for opportunities to buy if gold approaches 2,312 or 2,300.
Our trading plan for the next few days will be to buy gold above 2,298, with targets at 2,340, 2,355, and 2,375. Gold left a gap as it reacted to the NFP data with a fall to 2,328 and as of the time we are writing this article, has not rebounded yet. We believe that gold could cover this GAP in the next few hours and even could continue to rise.
