However, we’re certainly not suggesting buying the yellow metal right now. Upon a decisive close above the current H4 , looking for buying opportunities on a strong retest of this boundary is, nonetheless, something our team will very likely consider. Should this come into play, the first take-profit objective can be seen at the minor H4 Quasimodo resistance drawn from 1326.1, followed closely by the H4 supply area seen at 1331.8-1329.6.
Despite the technicals painting a relatively clear picture at the moment, we do have to keep in mind that the Fed is set to make an appearance later on today around 6-6.30pm GMT . This, as we’re sure most are already aware, is a relatively dangerous time for technical traders to be participating in the market. A general rule of thumb that we subscribe to is no positions are to be taken 30 minutes pre/post the event, which has so far served us well.
Levels to watch/live orders:
• Buys: Watch for price to close beyond the H4 at 1312.0-1316.0 and then look to trade any retest seen thereafter - waiting for a H4 close to form following the retest is preferred (Stop loss: beyond the trigger candle).
• Sells: Flat (Stop loss: n/a).