Early in the American session, gold is trading around 2,716, above 5/8 Murray, and above the 21 SMA and 200 EMA with a bullish bias.
Following the US data, gold hit the high of 2,717 and is likely to continue rising in the coming days to reach 6/8 Murray located at 2,734.
According to the H4 chart, we can see that gold has reached the top of the bullish trend channel around 2,717 and is testing this area. In case the gold price consolidates below this area, a technical correction could occur in the coming days.
If gold falls below 2,620, we can expect it to reach 2,695 and even 2,681. Eventually, the instrument could reach the 200 EMA located at 2,653.
Gold left a gap at about 2,657 and it is likely to cover this gap in the next few days provided that the price falls below 2,681.
The Eagle indicator is reaching its overbought zone. So, we believe gold could develop a technical correction in the next few days.
The material has been provided by InstaForex Company - www.instaforex.com
