Early in the American session, Gold (XAU/USD) is trading around 2,737, reaching the 6/8 Murray zone and the top of the uptrend channel which acts as a strong resistance.
In the chart above, we can see that gold has been trading within an uptrend channel since December last year. On this occasion, it is testing a strong resistance zone. So, we believe that a technical correction could occur in the next few days.
If gold consolidates above $2,734 or above $2,700, the outlook could be positive and we could expect it to reach 7/8 Murray at $2,773.
On the contrary, if gold consolidates below 6/8 of Murray, we could expect the metal to fall towards the 21 SMA located at 2,712 and finally towards 5/8 of Murray located at 2,695.
The eagle indicator is in an overbought territory. Therefore, we could expect a technical correction to occur in the next few days.
The material has been provided by InstaForex Company - www.instaforex.com
