Gold to soften before FOMC Announcement
At the current trajectory of the market, the price favors USD before FOMC in hopes of the dovish words 'tapering' to proceed. We've seen the market shift into a risk-off mode where funds have run to the yen as a safe haven.
As for gold, I see an opportunity for bulls to reverse as high-impact news hits the floor. Gold has currently hit a resistance point with a nice pinbar forming on H1 Timeframe. A double top formation at this key level will determine my expectation of price to proceed downwards.
Sell XAU 1777.15 SL 1782.00 TP1: 1767.10 TP2: 1761.10 TP3: 1745.10
Confluence Details:
1. Rejection off resistance key level at 1777.00
2. Bearish Fakeout Pattern in motion
3. H4 0.5 Fib Retracement level
4. H4 1.414 Fib Extension Level
5. Double Top at 1777 needs to form in order for trade to be valid (I won't enter without this)
Also bear in mind, the market has the potential to form a LL at 1767.10 and extend higher if there is enough buying pressure. Taking all profits at this is the safest option.
Other than that, Happy Trading FOMC!
As for gold, I see an opportunity for bulls to reverse as high-impact news hits the floor. Gold has currently hit a resistance point with a nice pinbar forming on H1 Timeframe. A double top formation at this key level will determine my expectation of price to proceed downwards.
Sell XAU 1777.15 SL 1782.00 TP1: 1767.10 TP2: 1761.10 TP3: 1745.10
Confluence Details:
1. Rejection off resistance key level at 1777.00
2. Bearish Fakeout Pattern in motion
3. H4 0.5 Fib Retracement level
4. H4 1.414 Fib Extension Level
5. Double Top at 1777 needs to form in order for trade to be valid (I won't enter without this)
Also bear in mind, the market has the potential to form a LL at 1767.10 and extend higher if there is enough buying pressure. Taking all profits at this is the safest option.
Other than that, Happy Trading FOMC!
As the US government & Congress nears its debt ceiling limit, this poses a huge risk to the entire country.
If they are unable to pay the bills, it doesn't matter if tapering occurs or not.
Hence why we saw a mixed signal on Gold last night in contrast to USDJPY where prices were smooth sailing.
Based on the charts, we may see gold prices continue to trend up as economic uncertainty wanes within the markets.