Early in the American session, XAU/USD is trading around 1,923.28. It is located within a symmetrical triangle, below the 21 SMA, and below the 200 EMA.
According to the 4-hour chart, we can see a consolidation in gold after having reached the low at 1,912 and the high at 1,947. This movement could mean a new bullish cycle for the next few hours, only if gold consolidates above 1,927.
In case gold falls below 3/8 Murray located at 1,921 and consolidates below 1,920, it could be seen as a signal to sell. A break of the symmetrical triangle could mean a technical correction. The upward targets will be 2/8 Murray at 1,906 and even at the psychological level of $1,900.
The daily pivot point is located around 1,925. If gold trades below this level, it could have a technical correction in the coming hours. The 200 EMA located at 1,925 keeps gold under bearish pressure. In case it fails to consolidate above 1,927, it could be seen as a signal to sell with the target at the first support of around 1,914.
A sharp drop in gold could push the price to the 2/8 Murray support located at 1,906. However, the eagle indicator is giving a positive signal. Therefore, a technical correction could be seen as an opportunity for gold to rebound or to resume its bullish cycle. The instrument could again climb to 1,927 and could even reach the 1,945 area.