The price of gold managed to rebound during Tuesday's Asian session, rising above $3,942 to reach Murray's 5/8 level—around $4,062—during the US session, a gain of more than $120. This level also coincided with the upper band of the downtrend channel.

Gold was unable to break above the 5/8 Murray level, so this level is currently acting as strong resistance, putting pressure on gold. XAU will likely continue to fall until it reaches the $3,970 level, which could be viewed as strong support since this level was reached on June 24 and could provide strong support around this area.

If gold consolidates above the 61.8% Fibonacci level or above $3,970 in the coming hours, this could be seen as a positive signal to buy, with targets at $4,000 and ultimately at $4,062. If gold maintains the upward momentum, we could continue buying with targets at the 200 EMA around $4,285.

The Eagle indicator is showing a positive signal, so this pullback could be seen as an opportunity to open buy positions as long as the price consolidates above $3,970, with targets at the 6/8 Murray level around $4,375.

Should XAU/USD break below $3,950, the outlook could turn negative, and we could expect the price to reach the 161.8% Fibonacci level around $3,880 and ultimately reach the 261.8% Fibonacci level, which coincides with the 4/8 Murray level at $3,750.

If the price consolidates above $4,062, the outlook could be positive, and above this level, we could look for opportunities to open long positions with targets at $4,300 and $4,375