Gold prices are consolidating after an active decline during the trading session on Tuesday, again trying to consolidate above the psychological level of 1800.00.
A noticeable pressure on the asset's position yesterday was exerted by the fact of the correctional rise of USD against its main competitors. The market also reacts to the growth of Treasury bond yields, which renewed weekly highs. USD ignores the release of the extremely weak report on the US labor market for August last week, which, however, led to a noticeable decrease in expectations regarding the imminent reduction of the quantitative easing (QE) program by the American regulator.
Today, a speech is expected from the Fed's representative, John Williams, who will present his vision of the situation. In addition, investors are awaiting the publication of the Fed's Beige Book, a monthly economic review from the regulator.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting ambiguous nature of trading in the ultra-short term. MACD is going down, keeping a fairly stable sell signal (located below the signal line). Stochastic is developing a confident "bearish" trend, but it is located in close proximity to the level of 20, which can be called the border of the oversold area.
Existing short positions should be kept until technical indicators are clarified.