Early in the American session, Gold is trading around 2,325 below the 200 EMA and 21 SMA, bouncing after falling from 2,368 and reaching the low at 2,316 but showing signs of exhaustion.
Last week, gold printed a high of 2,368, after failing to reach 6/8 Murray and quickly fell in a matter of eight hours, losing almost $50. This strong technical correction could be the beginning of a sequence of declines for gold. It is likely that if gold consolidates below 2,337, it could continue the decline, reach 2,312, and even drop to the psychological level of 2,300.
On the other hand, if gold consolidates above 200 EMA and above 2,337, the outlook could be positive and gold could rise to 2,345, 2,358, and 2,367.
Technically, the eagle indicator reached overbought levels on June 20th. So, from this level, we saw a technical correction. This current bounce could be seen as an opportunity to sell if gold has the 61.8% Fibonacci retracement at 2,350.
A sharp break of the uptrend channel formed since June 7 could mean a change in trend and gold could reach 4/8 Murray around 2,250.
