Gold - 4 Hour Chart - Downward Channel

Gold Gains Support Ahead of FOMC – 61.8% Fibo Level On the Cards

Posted Wednesday, May 2, 2018 by
Arslan Butt • 1 min read

Howdy traders. Gold is trading slightly bullish this morning before the release of FOMC and Fed fund rate later today. Is it preparing itself for another sharp sale? Let’s find out how to trade gold today…

Recalling FX Leaders May 2 – Economic events brief, the Federal Reserve (FED) officials are meeting today to release their statement on the U.S. monetary policy. The central bank is widely expected to keep the rates on hold until July. But, investors will be eyeing the FOMC closely for clues about the next rate hike.  

Gold - 4 Hour Chart - Downward Channel

As you can see on the chart below, gold is a strong bullish contestant today. It has formed solid bullish candles which are signaling a clear buying intention of gold. The immediate resistance that I can see is $1,310 now as gold is facing a hard time breaking through upwards. If that’s not enough to get the bulls and bears attention, the area also marks the 38.2% Fibonacci retracement.

The formation of doji or spinning top candles below $1,310 may drive bearish in the market. While a break above this level can lead gold towards $1,316, a 61.8% Fibonacci level. On the flip side, gold is facing a nice support at $1,307 and $1,301 today.

Gold – XAU/USD – Trading Plan

I would prefer to stay out of the market ahead of FOMC and ADP nonfarm figures. However, the rough idea is to stay bearish below $1,307 and $1,316 today. Good luck!

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 is our 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
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of
SPONSOR BROKER