Gold is trading around $4,548 under strong downward pressure, below the 21-day SMA and the 200-day EMA, and within a downtrend channel that has been forming since May 11.
Gold is expected to reach support levels around $4,426, which coincides with the lower band of the downtrend channel, or it could even reach the 6/8 Murray level around $4,375.
If gold recovers above $4,550 in the coming hours, we could consider this zone as a buying opportunity until it reaches the upper band of the downtrend channel at $4,618.
As long as the gold price consolidates below the downtrend channel, this could be seen as a signal to continue selling in the coming days.
A decisive break above $4,620 could push the gold price back toward $4,760 and could even reach the 8/8 Murray level around the psychological $5,000 mark.
The Eagle indicator is showing a negative signal. So, in the event of a recovery and as long as the price trades below $4,620, this could be seen as a signal to continue selling in the coming days.
