FX.co ★ Trading Signal for GOLD (XAU/USD) for November 6-7, 2023: sell below $1,992 or $2005 (21 SMA - range)

Early in the European session, gold (XAU/USD) is trading around 1,987.82 within an uptrend channel formed since October 30 and within a range zone between 2,005 and 1,965.

Currently, gold has reached the 21 SMA located around 1,986 and it is expected that around this point gold could have a technical rebound to cover the GAP left at the opening of the weekly session around 1,992.

Once this GAP is covered, gold could resume its bearish trend or continue to rise until it finds resistance at 2,005 and this could be seen as a selling opportunity at both levels.

Gold has upside potential and as long as it trades above 1,968, we could expect it to continue rising. In the coming days, it could reach +1/8 of Murray located at 2,031.

On the other hand, if gold falls below the 7/8 Murray (1,968) on the H4 chart and consolidates below the 200 EMA (1,941), it could reach the psychological level of $1,900, which could be the beginning of a change in the trend in the medium term.

As long as gold falls and rebounds between 1,968 and 2,005, a range-bound movement is expected and we could see these levels as a key point to buy or sell.

If gold falls towards 1,968, which is the bottom of the downtrend channel, it could bounce around this level which could be seen as a signal to buy with targets at 1,987, 2,000 and 2,031.