XAUUSD -FOMC!!

This is our view for FOMC later today. This is based on our own opinion of the markets and our own analysis, please do your research and analysis to make an informed decision. We can only project what we think can happen, nothing is ever going to be 100%.

We're expecting there to be a bit of a swing low on the DXY which, if correlated to Gold would entail Gold pushing up in the first instance. Please refer to our DXY chart for our levels.

We have the areas above where we would like to see the price resist and potentially test the short trade. So here we have 2 scenarios:

Scenario 1:

The price goes down first towards that 1768-70 level and supports, this area would be a good indication that we will be going higher to test the 1795 levels and potentially above towards 1805-8. At the higher level we will want to test the short trade for the lower levels.

Scenario 2:

DXY does what we think its going to do and swings low, at this point we would expect Gold to go higher towards the highlighted zones and would want to see resistance at those levels. A strong push could take the price to 1795 and above that the 1805-8 level, where we would like to test the short trade again for the lower levels.

Resistance levels for your charts:

1776-78
1785-89
1795
1803-07

It is advisable not to trade the actual release if you are a new trader. Rather, wait for the movement to be over with and then use your analysis to identify a good entry point for your trade.

As always, trade safe.

KOG