Early in the American session, Gold (XAU/USD) is trading at 2416 above 5/8 Murray and above the 21 SMA, testing the top of the bearish trend channel whose break could originate a new bullish sequence for gold. If gold breaks 2,416, it could extend its rise and reach 2,437 in the next few hours.
Technically, XAU/USD could reach 6/8 Murray located at 2,437. Beyond this level, it could return to 2,468 and even towards the psychological level of 2,500.
On the contrary, if gold falls below 2,405, there is a possibility of reaching 4/8 Murray at 2,375 which coincides with the 200 EMA and acts as a good key support.
In case gold falls below this key level of 4/8 Murray, the outlook could be negative. Therefore, the metal could reach 2/8 Murray located at 2,312 in the short term.
Gold during the European session, the instrument reached 2,417. We believe it could rise later today and then resume its bearish cycle. Meanwhile, we can sell below 2,437. Around this level, there is an important resistance. We suppose if the price fails to overcome this level and consolidate above 2,440, gold could make a technical correction.
