Stay 
Trading Conditions
Products
Tools
XAU/USD is trading around 2,167.13, above the 200 EMA, above the 5/8 Murray, and within a downtrend channel forming since March 20.
Last week, gold reached the low of 2,156 after a strong technical correction from the 2,222 level, almost $70 from the historical price. We can see in the H1 chart that this rapid fall could cause a technical rebound in the coming days. Therefore, in the short term, gold could resume its bullish cycle if it breaks and consolidates above 2,180 - 2,187.
We believe that in the next few hours, gold could trading within the downtrend channel and we could look for opportunities to sell in case it reaches the top of the downtrend channel around 2,176. In case gold breaks this area, we could look for opportunities to sell below 6/8 Murray located at 2,187. If this scenario occurs, our take-profit could be located at 2,156 and finally, at 2,135.
The strong support zone of 5/8 Murray extending since March 15 has become a good support point for gold. So, we believe that if gold falls and bounces around this level, it will be seen as an opportunity to buy with the target at 2,176.
If bearish pressure prevails and gold falls below 2,156 (5/8 Murray), it will be seen as a clear signal to sell with targets at 2,145 and 2,132.
The eagle indicator is giving a negative signal but is approaching oversold areas. So, we believe that in the short term, there could be a technical rebound if gold consolidates above 5/8 Murray which will allow us to buy.
Our trading plan for the next few hours is to sell gold below 2,176 or buy above 2,156. A breakout of the downtrend channel could change the trend of gold.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
