Gold's Pivot Point: Fed Decision and Market Sentiment
After the Fed maintained rates, gold's response was to stabilize near the $2037.50 Fibonacci level, showing resilience. This pause in rate hikes, coupled with no immediate follow-through on the bearish break, presents a technical conundrum.
Technical Analysis:
Gold's failure to sustain below the $2037.50 level could indicate underlying bullish sentiment. If gold sustains above this pivot, it may re-attempt the $2140 resistance. Conversely, a close below could see further decline towards $1980, the next Fibonacci retracement.
Market Watch:
Traders eye the $2040 and $2037.50 levels for directional bias post-Fed, with the lower Bollinger Band suggesting potential oversold conditions ripe for a rebound.
Positioning:
A cautious approach is warranted; if bullish signals confirm, long positions near the $2037.50 support are favorable, aligning with a bullish strategy amidst a hesitant dollar.
Technical Analysis:
Gold's failure to sustain below the $2037.50 level could indicate underlying bullish sentiment. If gold sustains above this pivot, it may re-attempt the $2140 resistance. Conversely, a close below could see further decline towards $1980, the next Fibonacci retracement.
Market Watch:
Traders eye the $2040 and $2037.50 levels for directional bias post-Fed, with the lower Bollinger Band suggesting potential oversold conditions ripe for a rebound.
Positioning:
A cautious approach is warranted; if bullish signals confirm, long positions near the $2037.50 support are favorable, aligning with a bullish strategy amidst a hesitant dollar.