Early in the American session, Gold is trading at 2,732 above the 21 SMA and below the 3/8 Murray, making a technical rebound after the PMIs from the United States. Once the market gets to know the data, this will generate a strong technical correction.
From the low of 2,710 reached on October 23 to the high reached today at 2,743, gold has made a technical correction towards 2,722 reaching the 61.8% Fibonacci area.
This technical correction could be seen as an opportunity to resume buying. Above 2,720, we could look for buying opportunities. In case gold bounces above the 21 SMA around 2,728, we could go long with the targets at 2,740. Finally, the price could reach a high of 2,758.
On the other hand, consolidation below 2,720 on the H1 chart could invalidate our bullish outlook and gold could reach the psychological level of 2,700 or around the 200 EMA located at 2,705.
The Eagle indicator has been giving positive signals since October 23. So, we will look for opportunities to buy whenever the price consolidates above the 61.8% Fibonacci retracement.
