In the American session, the XAU/USD is trading around 2,626, bouncing after having reached 2,619 during the European session. Gold is located above 3/8 Murray and within the uptrend channel forming since November 12.
We can see on the H4 chart that gold has made a technical correction after having previously reached 2,641. So, a technical rebound is likely to occur in the next few hours and the price could reach the area of 2,639 again.
On the other hand, if gold falls below 3/8 Murray, the bearish movement could accelerate and the metal could reach the 21 SMA located around 2,603. Below this area, we could see gold become more bearish and it could reach 2/8 Murray located at 2,578 and could finally cover the gap left around 2,662.
If gold reaches 2,640 again, it could be seen as an opportunity to sell as it is technically overbought, but if the price breaks this area, gold could reach 4/8 Murray located at 2,653. This is a strong resistance zone and a strong technical correction is imminent from there.
As long as gold consolidates above 3/8 of Murray, we will look for opportunities to buy with targets at 2,632 and 2,640. The Eagle indicator is showing a positive signal which supports our bullish strategy.
