Gold Speculators Trimmed Exposure - FOMC Ahead! - Forex News by Strategia Forex

Gold Speculators Trimmed Exposure – FOMC Ahead!

Posted Wednesday, June 14, 2017 by
Arslan Butt • 2 min read

The gold traders are stretching upward before the US trading session today. The United States is about to release very important economic figures which are known to cause dramatic changes in the gold prices. Refer to our earlier report, Forex Signals Brief for June 14th – FED Policy Decision Simplified, Get Ready To Trade! for a more detailed account of what to expect. 

For now, the gold is consolidating in a very narrow range of $1266 -$1270 due to thin trading volume as most investors are waiting to trade the market until after the Federal Reserve's policy decision.

 

How Is FOMC Likely To Impact The Gold?

Hawkish FOMC – The gold prices are likely to "dip" in the case of a contractionary monetary policy. This would include, interest rate hikes, a shift in Dot Plot (more than 1 rate hike in 2017) and optimistic economic outlook.

Dovish FOMC – Alternatively, if the Fed leaves the interest rates unchanged at 1%, we are likely to see some serious gains in the gold prices.  

In my opinion, investors have already traded the rumors (interest rate hike sentiment) and now are waiting for the actual fact.

Forex Trading Signal – Idea

I'm keeping my eyes on the game changer trading level of $1259/60. I'm looking to add a sell below until $1254 & $1248. While on the upper side, the target is $1274 and $1279.

Gold - 4 Hours Chart - Triple Bottom PatternGold – 4 Hours Chart – Triple Bottom Pattern

 

Technical Outlook – Intraday

Technically, on the 4 – hour chart, the $1259/60 is under the spotlight due to the following reasons:  

  • Gold has a formed a triple bottom pattern which is extending a firm support at $1259/60.
  • Gold has completed 38.2% Fibonacci retracement at $1259/60.
  • The 50- period's exponential moving average is supporting the metal at $1259.48
  • Lastly, the test bar above $1259 confirms investors' intentions.
 
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Bullard is the most dovish member of the FED. But he mentioned rate hikes today, instead of further cuts.
30 mins ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of