On 4H charts before the opening of the European session, gold (XAU/USD) is trading above the 21 SMA and drawing a bullish channel, showing an overbought signal according to the eagle indicator.
Yesterday gold made a weekly maximum for now, in the 1789 area. However, the pair could not preserve its bullish momentum since at that level it is located the 5/8 of Murray's resistance level and a weekly range.
The benchmark yield of US Treasuries continues its decline since the beginning of April. This data is supporting gold, which investors are seeing as a safe haven asset.
Gold could again target 1,790 and up to 1,800 only if it remains above the 21 SMA located at 1765. A consolidation above 1770 will be a good buying opportunity until 1,800.
On the contrary, with a break and consolidation below 1760, SMA zone of 21, we could expect a rebound in the uptrend channel, which coincides with the support of Murray's 4/8 of 1750. At this point, it will be a good buying opportunity.
The market sentiment for XAU / USD, gold has 81% of operators who are selling the pair, this is a sign that we could see an upward increase to exceed $1,800 a troy ounce in the short term.
Support And Resistance Levels For April 20 - 21, 2021
Resistance (1) $1,785
Resistance (2) $1,797
Resistance (3) $1,808
Support (1) $1,761
Support (2) $1,752
Support (3) $1,732