Early in the American session, the XAU/USD is trading around 3,180, rebounding after reaching 3,175, a level that coincided with daily support level 3 (S_3). A technical rebound is expected in the coming hours to reach the top of the downtrend channel.
Technically, gold attempted to break out of the downtrend channel during the European session, but it failed, and a strong technical correction followed below 3,250 to reach 3,175.
This area is expected to offer good support for gold, so we will look for long opportunities above 3,175, with targets at 3,303 around the 5/8 Murray, and finally at 3,225, the top of the downtrend channel.
A sharp break of the downtrend channel and consolidation above the 200 level at 3,229 will be seen as a buying opportunity with targets at 3,359, around 7/8 Murray.
Gold left a gap around 3,325. It is likely to be filled in the coming days. For this, we should wait for gold to consolidate above 3,230, then the outlook would be positive.
