Gold is trading around the 2,030 level which coincides with the 21 SMA and 2/8 Murray. The H4 chart shows that gold found strong support around the bottom of the uptrend channel and could find an opportunity for an upward movement only if it consolidates above 2,031 in the next few hours.
In case of a sharp breakout of the uptrend channel and consolidation below 2,028 on the H4 chart, we could expect a sharp decline with targets 2,015, $2,000 and finally, at -1/8 Murray located at 1,984.
If the XAU/USD continues to bounce in the next hours and remains trading within the bullish channel, we could expect it to reach the resistance zone of 2,040, 2,046 and finally, it could reach 2,062 (4/8 Murray).
Because the eagle indicator has been giving an overbought signal since February 23, it is expected that in the next few hours, the XAU will break and trade below 2,030. Then, a signal for a sharp drop could be triggered and we could expect the price to reach the psychological level of $2,000.
Our trading plan for the next hours is to sell the XAU/USD below 2,030. Above 2,031, we should expect gold to resume its bullish cycle and the metal could reach 2,046 and 2,062.
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