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