Gold is forming a wedge after breakout from the value zone. From yesterday GOLD is consolidating between 1710 to 1720 level. Today also we may have smaller candles between these levels. FOMC will give the momentum for breakout. I hope Dollar gets much stronger after FOMC. But technical analysis shows GOLD should also make highs upto 1742 by end of month. So after FOMC we will see stop loss hunting upto the 1694 level. So be ready to buy the lows instead of waiting for SELL opportunities.
The important levels today 1694-1704-1714-1730-1742-1772
This is very sensitive level. So dont SELL with big TP. Wait for lows and BUY between 1694-1704
If interest rate go up. That would call for a stronger greenback. Which would then push gold down significantly.
Tomorrow will be extremley volatile. Looking at an eliots wave what i see is a push up into your level pre fomc. Then a massive push to the downside.
Just my thesis.
boyinjungle
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@iNtuNeFXMarkets I also agree with your hypothesis about the negative correlation with interest rate. But do you think Gold will break longterm support at 1680. Moreover this time most of market will be on sell side thinking of higher increase rate. This will be the best opportunity for hitting their SL by making high. I feel we should be ready for manipulation also. So this week will be highly volatile as you said. Wishing you the best
boyinjungle
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I also agree with your hypothesis about the negative correlation with interest rate. But do you think Gold will break longterm support at 1680. Moreover this time most of market will be on sell side thinking of higher increase rate. This will be the best opportunity for hitting their SL by making high. I feel we should be ready for manipulation also. So this week will be highly volatile as you said. Wishing you the best
Tomorrow will be extremley volatile. Looking at an eliots wave what i see is a push up into your level pre fomc. Then a massive push to the downside.
Just my thesis.