Put Your Seat Belts On – Massive Volatility Expected In Gold!
Arslan Butt • 2 min read
The financial market and trading are all about fundamentals today. We are waiting for the Federal Reserve monetary policy decision, though, the rate hike isn't expected. However, the Press Conference and Statement will play enough role to give us an opportunity to trade the Gold. That's what I'm looking to do with Gold today.
Key Technical Drivers
On the 4- hour timeframe, the Gold is trading in a narrow range of $1,306 – $1,316, and the range is expected to break on the release of Federal Open Market Committee (FOMC) and FED Fund Rate. Recalling the Doji candle followed by a strong bearish trend weakened the selling sentiment of Gold causing a slight retracement in the Gold. Check out new trading levels to trade the FOMC today.
Gold – 4 Hour Chart – Sideways Ranges
XAUUSD – GOLD – Trading Levels
S1: 1306 R1: 1318
S2: 1303 R2: 1327
S3: 1297 R3: 1334
Key Trading Level: $1312
The yellow metal is holding below a major resistance level of trading level of $1,316. The break above $1,316 is likely to add further buying up to $1,323. The Stochastics has not oversold anymore and has entered the overbought zone signaling that technically there is not much room for further buying. Thus, we need to focus on the outcome of fundamentals.
Gold – Trading Idea
We have two trade ideas for today considering the FOMC, but we need to ensure the strick money management to avoid any uncertain situation.
Dovish FOMC – Buy above $1,307 to target $1,316 and $1,324.
Hawkish FOMC – Sell below $1,317 to target $1,305 and $1,297.