Put Your Seat Belts On – Massive Volatility Expected In Gold!

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

Support            Resistance

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.