FX.co ★ Trading Signals for GOLD (XAU/USD) for October 26-27, 2023: buy above $1,970 (21 SMA - 7/8 Murray)

Early in the American session, gold (XAU/USD) is trading around 1,978.66, above the 21 SMA, and within an uptrend channel formed since October 20.

Gold has formed a double top between the highs of October 20 at 1,997 and on October 26 at 1,994. Trading below the 8/8 Murray, the instrument could fall to the support of 1,937 (6/8 Murray) and even 1,906 (5/8 Murray).

In the next few hours, gold could find a strong bounce around 1,970 or above this level, which could be seen as an opportunity to buy with targets at 1,985 and the psychological level of $2,000.

In case gold breaks sharply from the uptrend channel and falls below 7/8 Murray around 1,968, we could see a bearish acceleration. The price could fall to 6/8 Murray located at 1,937 and could even reach the EMA 200 located at 1,918.

Since October 19, the eagle indicator has been giving a negative signal. If the metal fails to break and consolidate above 1,970, it could begin a downward acceleration to the psychological level of $1,900.