Early in the American session, Gold (XAU/USD) is trading around 2,004.38. It is located below the 200 EMA and above the 21 SMA. On the 1-hour chart, we can see that gold is trading within a downtrend channel. However, it could find rejection around the 2,005 level.

In case there is a technical correction, it is expected that gold can bounce around the 21 SMA located at 1,996 or around the daily pivot point located at 1,994. Above this level, it could be a good opportunity to buy with targets at 2,005 (200 EMA) and at 2,009 (top of the bearish channel).

Besides, a sharp break above the downtrend channel and consolidation above 2,010 could be seen as a signal to continue buying with targets at 2,027 (GAP) and 2,031 (+1/8 Murray).

Several days ago, we have been commenting in our analysis that gold left a gap in the area of 2,023. If the price consolidates above 2,009, it could be seen as an opportunity to continue buying. This could cover this gap and the instrument could reach the +1/8 Murray at 2,031. If bullish force prevails, gold could reach the 2,062.50 level (+2/8 Murray).

Our trading plan for the next few hours is to buy gold if it rebounds around 1,996, targeting 2,009 (top of the bearish channel). The Eagle indicator is giving a positive signal and remains below the oversold zone which is likely to be seen as an opportunity to continue buying the XAU/USD pair.