Gold is trading around $4,192 under downward pressure after reaching a high of $4,240. Gold could rebound above $4,180 and reach the top of the trend channel around $4,230.
According to the H4 chart, we can see that gold is within a downtrend channel formed since November 26. Thus, if a pullback towards $4,230 (top of the downtrend channel) or towards the 7/8 Murray located at $4,215 occurs, it will be seen as an opportunity to resume selling.
Gold is likely to reach the bottom of the downtrend channel around $4,103 in the coming days and could even reach the 200 EMA around $4,090. Finally, XAU/USD is expected to reach 6/8 Murray around $4,062.
Given that the Eagle indicator is showing a negative signal while the instrument is trading below the downtrend channel, any spike or technical rebound will be seen as a signal to resume short positions.
The medium-term outlook remains bearish, and gold is expected to reach the psychological level of $4,000.
