FX.co ★ Trading Signal for GOLD (XAU/USD) for May 12-15, 2023: buy above $2,003 (8/8 Murray - symmetrical triangle)

Early in the American session, Gold (XAU/USD) is trading around 2,003.97 above the 200 EMA and above the psychological level of $2,000, the area that coincides with the 8/8 Murray line.

We can see that gold is bouncing after reaching $2,000.90. In the next few hours, the instrument is likely to continue to bounce and can reach the 21 SMA located at 2,024.

Additionally, in case there is a pullback towards the 200 EMA or the bottom of the symmetrical triangle, we could expect a bounce at this level. The price action could be seen as an opportunity to buy with a target at 2,027 (top of the technical pattern).

On the chart above, we can see the formation of a symmetrical triangle and we have noticed that gold has been testing the top of this pattern.

In the next few hours, we expect it to consolidate and resume its bullish cycle. For this, we can look for opportunities to buy above 1,993 (200 EMA) in case of a rebound or above 2,000 (8/8 Murray) or around the current price levels of around 2,003.

The eagle indicator is giving a positive signal and this could be interpreted as an opportunity to buy in the next few hours, with targets at 2,020 and 2,027.

It is expected that in the coming days, XAU/USD will consolidate and trade within this technical pattern until a sharp break occurs.