Early in the American session, gold is trading around 2,682 with a bullish bias after having found a strong support around the 21 SMA located at 2,660.
Gold could face a strong resistance around 5/8 Murray located at 2,695 which could be seen as an opportunity to sell with targets at 2,660.
With a consolidation above 2,695 (5/8), the instrument could continue the bullish momentum and we expect gold to reach 2,734 where the 6/8 Murray is located which could represent a strong overbought area.
In the next few days, we could sell gold below 2,695 with the first targets at 2,660. The price could even fall to the 200 EMA located at 2,645.
On the H1 chart, gold is reaching overbought levels. So, we will look for opportunities to sell in the next few hours, with targets at 2,675 and 2,665.
The material has been provided by InstaForex Company - www.instaforex.com
