Early in the European session, Gold (XAU/USD) is trading around 2,003.69, inside a symmetrical triangle pattern, above the 21 SMA and 200 EMA. Yesterday, gold managed to consolidate above the psychological level of $2,000.
Gold is consolidating after reaching the low of $1,969 on April 19. It is likely to continue higher but we could expect a technical correction if it falls below 8/8 Murray (2,000).
On the other hand, in case there is a sharp break below the symmetrical triangle and below the 21 SMA, it could mean a technical correction and the instrument could reach the first support around 1,992.
If the bearish force prevails, gold could continue descending until it reaches the key support level at 1,980 and finally could fall towards 7/8 Murray located at 1,968.
On April 14, gold left a gap at around 2,023. In case gold consolidates above the 2,012 level, we could expect a bullish acceleration and the price could reach +1/8 Murray located at 2,031.
A daily close above 2,011 could mean a resumption of the bullish cycle and the price could reach 2,031 in the next few days. Finally, it could climb to 2,062.50 (+2/8 Murray).
Conversely, with a fall below the psychological level of $2,000, gold could drop to 7/8 Murray at 1,968 in the next few days and could fall lower to the psychological level of 1,900.
The Eagle indicator on the 1-hour chart is showing neutral signs. So, we don't have a clear signal for the next few hours. We should wait for gold to define the trend and then buy or sell.