FX.co ★ Trading Signal for GOLD (XAU/USD) for June 20-21, 2023: buy above $1,930 (2/8 Murray - rebound)

Early in the American session, gold (XAU/USD) is trading around 1,932.18, bouncing above 1,929 and approaching oversold levels on the 1-hour chart.

We can see that since June 15, gold has been trading within a downtrend channel that was broken and now could be going through a technical correction to resume its bearish cycle.

The 1,930 level of the past has offered a nice bounce opportunity. Gold is now expected to find support around this area, thus suggesting a strong buying opportunity with a target at 1,938.

2/8 Murray area represents strong resistance for gold. In case it consolidates above 1,940, we could expect the bullish cycle to resume and the metal could go back towards 1,953 (200 EMA) and 1,958 (3/8 Murray).

Conversely, if gold falls below 1,930, it is expected to hit a June 15 low around 1,924.73 and finally, could hit 1/8 Murray around 1,906.

Our trading plan for the next few hours is to buy gold above 1,930, with targets at around 1,938. The Eagle indicator is reaching oversold levels which is likely to be a good buying opportunity.