FX.co ★ Trading Signals for Gold (XAU/USD) for December 28-29, 2023: sell if pulls back at $2,093 (overbought - 21 SMA)

Early in the European session, gold is trading around 2,079.96, above the 21 SMA, and within the uptrend channel formed on December 14 on the 4-hour chart . We can see that gold is in a strong uptrend and is likely to continue rising in the coming hours to reach the 2,085 area. It may even reach the weekly resistance at 2,093.

On the other hand, we note that the daily pivot point is located at 2,075 which favors bullish momentum. As long as gold trades above this area, any technical bounce is expected to be seen as a buying opportunity with the target at 2,093.

In case gold falls below 2,075 (pivot point) and consolidates below this level, we could expect a drop towards 6/8 Murray at 2,062. The metal could find strong support around the 21 SMA at 2,060.

In case the bearish pressure prevails, we can expect gold to find support around the bottom of the uptrend channel located at 2,050. This could encourage a strong technical rebound and we could resume buying with the target at 6/8 Murray located at 2,125.

In case there is a strong fall in gold, we want this to be confirmed by the break of the uptrend channel and a close below 2,045. Then, we could expect an acceleration towards the 200 EMA located at 2,014 and the price could even reach the psychological level of $2,000.

As the US dollar is showing strong weakness, gold will likely continue to rise in the coming days. Every technical correction will suggest a buying opportunity. Additionally, if there is a break above 2,093, we could expect the instrument to rise and reach 6/8 Murray at 2,125.

Since December 26th, the eagle indicator reached extremely overbought levels and then we saw a quick decrease in volume. This fact could lead to a new uptrend rally, but the metal could be showing signs of exhaustion for a strong technical correction in the coming days.