Early in the American session, gold is trading around 3,195, below the 5/8 Murray line and below the 200 EMA and the 21 SMA, with a strong bullish bias.
During the European session, gold fell towards the 3,125 level, reaching the low of 3,120, which coincided with the 4/8 Murray line and the daily support, providing good support for gold.
Since then, gold has begun a strong technical rebound, which is expected to continue upward in the coming hours and could reach the 200 EMA around 3,222.
Gold is trading within a downtrend channel and is approaching the top of this channel. Therefore, we believe that if it fails to break above 3,203, we could expect a technical correction with targets at 3,150.
S_1 support is located around 3,145. We believe that if gold fails to break above 3,202 in the next few hours, a correction towards this area could occur and could be seen as an opportunity to sell and subsequently buy.
A decisive break above 3,203 could signal the end of the downtrend and initiate a new bullish cycle for gold.
To achieve this, we should expect consolidation above 3,200, then reach 3,222 and 3,281, potentially covering the gap left at 3,330 and finally reaching 8/8 Murray at 3,437.
