Early in the American session, gold is trading around 2,641 within an uptrend channel forming since November 20, below 4/8 Murray, and below the 21 SMA.
Gold is under bearish pressure and is likely to continue the decline until it reaches the psychological level of $2,500 in the medium term which coincides with the 0/8 Murray and 200 EMA.
Meanwhile, we expect that the metal could recover some of the losses in the short term and the price could reach the 4/8 Murray at 2,656. In case XAU/USD finds strong resistance in this zone, it could be seen as an opportunity to resume selling
On the other hand, if gold breaks and consolidates above 2,656, we could expect it to return to 2,695 where it could find strong resistance.
The Eagle indicator is showing oversold signals on the daily chart. So, we believe that above 2,617, gold could consolidate over the next few days, as this area has proven to be a strong support previoudsly.
The material has been provided by InstaForex Company - www.instaforex.com
