Early in the American session, Gold (XAU/USD) is trading around 2,315.36, below the 21 SMA, and below the 200 EMA, bouncing after reaching the low at 2,304. Gold could resume its bullish cycle in the next few hours provided that the price consolidates above 2,317, which represents strong resistance.
According to the H1 chart, gold is trading within a bearish trend channel formed since June 25 and has been testing this channel in recent hours.
If the current rebound gives it the impetus to break this channel, it would mean a resumption of the bullish cycle and the instrument could reach 2,328 in the next few hours and even the top of the main downtrend channel around 2,331.
On the contrary, if gold finds strong resistance around the top of the secondary downtrend channel located at 2,317, a new technical correction could occur and it could reach the psychological level of 2,300. The metal could even reach the first weekly support located around 2,295.
