FX.co ★ Trading signal for GOLD (XAU/USD) on August 26 - 29, 2022: buy above 1,757 (21 SMA - 200 EMA)

Early in the European session, Gold (XAU/USD) was trading below the 200 EMA located at 1,757.

After having reached a high of 1,765 around the top of the uptrend channel, Gold made a technical correction and is now showing signs that the decline could continue and break below 4/8 Murray at 1,750.

Gold keeps trading in the upward channel formed since August 22. In the event of consolidation above 1,750, gold could resume the bullish bias and reach 1,771 (top uptrend channel) and could even go as high as 5/8 Murray at 1,781.

XAU/USD manages to stay in positive territory for the third day in a row although investors are refraining from buying or selling due to some caution over Jerome Powell's comments as his words may have a high impact.

According to the chart above, gold should consolidate above 1,768, where there is the 200 EMA on the 4-hour chart. In this case, gold could advance and rise to the resistance of 1.781 (5/8).

On the contrary, if Gold consolidates below 4/8 Murray in the next few hours, it could fall towards the support of 1,727, the low of August 22. If the downward pressure increases, it will fall to 3/8 Murray at 1,718.

Our trading plan for the next few hours is to buy above 1,757 where there is the 21 SMA and the 200 EMA, with targets at 1,770 and 1,781. Conversely, in the event of a break below 1,750, we could sell with targets at 1,727 and 1,718.