XAU/USD is trading around $4,060, having rebounded during Monday's US session from the $4,026 level, and is likely to continue rising; it could break through the strong 2/8 Murray resistance and consolidate above the 21 SMA around $4,066.
If we see the price of gold remain above $4,062 in the coming hours, this could be considered an opportunity to open long positions, as technically the price could reach the 200 EMA around $4,115. Even if it breaks through this strong resistance, we could expect gold to reach the 3/8 Murray level around $4,218.
The Eagle indicator is showing a positive signal for gold, and it is expected to continue rising in the coming hours. Therefore, we will look for buying opportunities as long as the price remains above the 2/8 Murray level.
Conversely, if gold falls below $4,030 and decisively breaks the downtrend channel, there could be an accelerated decline, potentially reaching the -1/8 Murray level around $3,905.
Our outlook will remain bullish as long as the price consolidates above the strong resistance at the 2/8 Murray level; any technical pullback will be viewed as an opportunity to open long positions.
