Sideways Trading in Gold – Investors awaits FOMC Decision This Week! - Forex News by FX Leaders

Sideways Trading in Gold – Investors awaits FOMC Decision This Week!

Posted Monday, September 24, 2018 by
Arslan Butt • 1 min read

Gold consolidates above a strong support level of $1,193 as the dollar held strong on news that China has canceled trade talks with the United States. Besides the trade war, investors are also eyeing the US FOMC meeting for guidance on future rate hikes. The Fed is very likely to hike the interest rates by 25 base points from 2% to 2.25%.

Consequently, the dollar is getting stronger, making dollar expensive for foreign investors.

On the technical side, the yellow metal has come out of the ascending triangle pattern which is also suggesting a bearish bias of traders. The 20 & 50 periods EMA are providing resistance at $1,202 and $1,204 while the Stochastics is holding in the oversold range.

Support Resistance
1190.29 1209.6
1181.43 1220.04
1162.12 1239.35
Key Trading Level: 1200.73

The double bottom support at $1,193 is underpinning gold, but the violation of this level can lead gold prices towards $1,187. 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 // 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
Comments

Leave a Reply

avatar
  Subscribe  
Notify of