FX.co ★ Trading Signal for GOLD (XAU/USD) on September 8-9, 2023: buy above $1,930 (200 EMA - 21 SMA)

Early in the European session, gold (XAU/USD) is trading around 1,925.28, below the 200 EMA, above the 3/8 Murray. We can see a recovery in gold but we should wait for a confirmation.

The price of gold rebounded from a low of 1,915 forming a double bottom with the low of August 28. For this technical reversal pattern to be confirmed, gold should consolidate above 1,930.

In the 4-hour chart, we can see that gold managed to sharply break the downtrend channel formed since August 30. In the next few hours, if the price consolidates above 1,930, the bullish cycle could resume and the instrument could reach 4/8 Murray at 1,937.

If gold consolidates above 1,921, we could expect a bullish rally and the price could break above the 200 EMA. Such a price action could be seen as an opportunity to buy with targets at 1,937 (4/8 Murray) and 1,953 (5/8 Murray).

On the other hand, in case a reversal occurs in the price towards 1,917 and gold consolidates above 1,915, it could also be seen as a signal to buy since the double bottom pattern confirms an upside potential.

The daily pivot point is located at 1,919 which adds an upside potential for the next few days. If gold falls and bounces above this area, it could be favorable for a recovery in the short term.

The eagle indicator is slightly bearish. The key to a change in trend will be to wait for a daily confirmation close above 1,930.