Early in the American session, gold (XAU/USD) is trading at about 2,001.11, around the 8/8 Murray, and around the 21 SMA. During the opening of this week's trading session, gold left a bearish GAP which was completely covered.
Since then, we have seen a technical correction. However, the metal is now showing signs of exhaustion. If it fails to consolidate above 2,001, it is likely to fall towards the support of the uptrend channel around 1,986.
On the H1 chart, we can see that XAU/USD is trading within an uptrend channel. Gold is expected to bounce from 1,986 and could resume its uptrend cycle. The price could reach 2,013 and even +1/8 Murray at 2,031.
On the other hand, in case the instrument breaks below 1,980, then we could expect a bearish acceleration. Hence, the price could reach the 200 EMA located at 1,968 and even 6/8 Murray located at 1,937.
We expect gold to fall towards 1,987 in the coming hours. From there, it could resume its upward cycle. The 1,990-1,986 area will be a good buying point. The eagle indicator is giving a positive signal, so a bullish move is expected in the next few hours but a technical correction must occur first.