Early in the American session, gold is trading around 1,902.49, approaching the psychological level of $1,900.00 that could be seen as a technical rebound point.
In case gold bounces above 1,900, we could expect it to quickly reach 2/8 Murray located at 1,906. If the instrument consolidates above this level, this increases the chances of it reaching SMA 21 located at 1,914 and the top of the downtrend channel formed since August 31.
On the other hand, if gold breaks the psychological level of 1,900 and consolidates below this area, it could accelerate its fall and reach 1/8 Murray located at 1,890. If the bearish force prevails, gold could cover the GAP it left in February 2022, around 1,863.
The eagle indicator is in the oversold zone, which means that a technical rebound is imminent in the coming hours. If XAU/USD consolidates above 1,906, it could reach resistance at 1,914. Alternatively, if it fails to consolidate above 1,914 (21 SMA), it could be seen as a signal to resume selling.