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Early in the European session, gold (XAU/USD) is trading around 1,923.86, above 61.8% Fibonacci, as a result of the low of 1,900 and the high of 1,947.
On the 4-hour chart we can see that gold bounced strongly above the daily S_2 support around 1,914 and reached the 200 EMA located at 1,925.
From the high of 1,947 to the low of 1,914, an inverted pennant pattern was formed. If gold falls below 1,925, this could mean an advance of the bearish movement which in the next few hours could lead the price to 2/8 Murray located at 1906 and could even reach the low of September 14 around the psychological level of 1,900.
In case of a bearish scenario for the next few hours, we could wait for a signal to sell below 1,929 or around 1,925 (200 EMA), with targets at 1,918 and 1,906.
On the other hand, in case a pullback occurs towards 4/8 Murray (1,937), this could be seen as an opportunity to sell with targets at 1,918 (61.8% Fibonacci) and the price could even fall towards 2/8 Murray located at 1,906.
The eagle indicator is therefore giving a bearish signal since September 20. The key will be to watch if a bullish move occurs and gold trades below 1,9329, then it could be seen as a negative signal and an opportunity to sell.
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