Going into the news Wednesday afternoon, we're following this longer term pattern that many have written about from an perspective. Though the Dec 3 2015 low did get pretty close to the lower boundary of the diagonal, we're leaving the door open that it was only wave A of (5). That means the current rise would be B of (5). Once 'B' is finished, then another sell off would ensue in wave C of (5) which may be the final wave lower.
1137-1150 has been identified as a key level. This is the price zone where the (2)-(4) and 61.8-78.6 retracement (of the Oct - Dec 2015 downtrend) reside. There may be a reaction lower near that zone.
My colleague Ilya Spivak notes how the price of Gold has maintained an inverse correlation lately to the Fed Funds . I would encourage you to read more about that in his Q1 2016 Gold Forecast available here .
Another interesting point to consider is that FXCM's SentimentIndex flipped to negative earlier today. The reading has been positive for more than 2 months. So this flip to negative expresses the potential for additional juice available. This may push the prices higher into the cited zone of 1137-1150. Watch the SentimentIndex in real time to see how it behaves if prices do make it in the potential reversal zone.
An alternate that we're considering is that the diagonal is finished which implies a break above wave (4). A move above the (2)-(4) may provide an early warning signal to such a move.
Good luck and happy trading!