A Potential Entry Gold – Bulls Get Ready
Arslan Butt • 1 min read
Gold has traded in line with our forecast. As mentioned in the July 25th – Major Trade Setups For The US Session, we were expecting the gold to target $1243 upon the release of positive US indicators. The US Conference Board's confidence index rose from the previous figure of 117.3, releasing at 121.1.
Unluckily, we missed our entry as the prices moved before the news release. Now, the gold is trading at $1245, very close to the target level of $1243. That's a point where we can try to catch 30/40 pips in buying before the Fed monetary policy decision today.
Keep in mind that the market is very risky today. Refer to my earlier update, Forex Signals Brief July 26th to understand what to expect from the FOMC and how it's likely to impact different markets.
Gold – 4-Hour Chart – Horizontal Support Line
Moreover, if we look at the technical side, the gold is about to complete 61.8% retracement at $1243. Below this, the 50- periods EMA is waiting to provide support at $1242. Breakage below $1243 is likely to add more sellers until $1234. Whereas, the bulls are likely to target $1251 if gold prices survive to stay above $1243. I would highly recommend reading our Fibonacci trading strategy to learn more about trading the oversold/ bought trading zone.
Gold Trading Plan – (PRE-FOMC)
Before the release of the FOMC today, I'm looking to buy above $1243 with a minor stop below $1240 and a take profit at $1248. Keep following, as I will keep you posted about the gold entry in my US forecast update before the New York session.