Early in the American session, Gold (XAU/USD) is trading around 1,871.71 following an uptrend, below the 200 EMA and below the 4/8 Murray.
Since the beginning of the week, gold has continued its rise within a bullish channel on the 4-hour chart. Currently, the price is in a key resistance zone. If gold manages to stay trading below 1,875, we could expect a technical correction towards the 21 SMA at 1,853.
Gold continues to feed on investors' fears as they continue to seek safety and refuge in this asset. Any technical correction in the short term could be seen as an opportunity to resume buying orders.
On the other hand, in case gold decisively breaks the 4/8 Murray zone, we could expect the next key resistance level around 1,886, a level where the 200 EMA is located. This level could act as a strong barrier and it could be seen as an opportunity to sell.
Additionally, a sharp break below 1853 would invalidate the positive outlook for gold and it could reach the 1,831 level where it left a gap last week. This could be covered and the instrument could even reach 1,812 (2/8 Murray).
According to the H4 chart, the eagle indicator reached the extremely overbought zone. As long as it manages to negotiate between the area of 1886 (200 EMA) – 1,875 (4/8 Murray), this could be seen as an opportunity to sell.