Early in the American session, gold is printing lower lows, reaching the level of 1,799.01. Gold had found some support around 5/8 Murray at 1,812. However, bearish pressure continued to prevail and pushed the price towards the psychological level of 1,800.
At this time, we note that gold is trading around 1,802. However, the downside pressure is likely to continue and the metal may reach the weekly support at 1,793.
XAU/USD is going for the fourth weekly decline in a row and there is some probability of a strong technical rebound in the coming days. In the event of a further bearish bias and a daily close below 1,800, the next strong support appears at this year's low near 1,793.
The negative bias is expected to persist. However, the eagle indicator has reached the key level of 5 points which represents an extremely oversold price. According to this indicator, there is likely to be an imminent bounce in the next few hours, only if gold consolidates above 1,800.
According to the daily chart, we can see that gold has broken an uptrend channel formed on December 14, 2021, at around 1,860. Below this level, gold accelerated lower and reached a low of 1,800.
Currently, the price is generating signs of exhaustion and overselling. In the coming days, Gold is likely to remain above the strong support of 1,793 or above 1,800. We can expect a recovery towards 1,832 and to the top of the uptrend channel around 1,854 (200 EMA).
Our trading plan for the next few hours is to buy around 1,802 or in case of a technical bounce towards 1,793 that will also be a buy signal, with targets at 1,830 and 1,854. The eagle indicator is showing a sign of an imminent bounce which supports our bullish strategy.