Gold is undergoing a technical correction after bouncing strongly above the 200 EMA during the American session, reaching a high of 3,385.
Gold is likely to continue rising in the coming hours. If it consolidates above 3,371, it could reach the 6/8 Murray level at 3,398.
On the other hand, a consolidation below 3,370 could be seen as an opportunity to enter short positions with targets at the 200 EMA around 3,345.
Additionally, if a sharp breakout of the downtrend channel occurs, we could expect gold to reach the 1/8 Murray level around the psychological level of $3,300.
The Eagle indicator is reaching oversold levels, so technically, the selling opportunity lies if the gold price remains below the 5/8 Murray level at 3,378.
