Early in the American session, gold is trading around 3,313 with a strong technical correction after reaching 3,350 during the European session.
Gold is below the 21SMA and below the 200 EMA, which means that it could continue its fall in the short term and reach the Murray 6/8 at 3,281 and even 3,260.
Given that this area where the price is currently trading proves to be good support, we could expect a technical rebound to occur in the coming hours above 3,313. The next possible target is the 200 EMA around 3,335.
If this area proves to be a strong resistance, it could be seen as an opportunity to resume selling. If the gold price continues to recover, we could expect consolidation above 3,340, which would signal a new bullish cycle, potentially reaching 3,359 and even the 8/8 Murray level at 3,437.
The eagle indicator is reaching an oversold zone, so gold is likely to continue bouncing over the next few days. Any pullback, as long as the price trades above 3,281, will be seen as a buying opportunity with a target at the Murray 7/8 located at 3,360.
