Gold Sideways Ahead of FOMC – Bearish Butterfly in Highlights - Forex News by FX Leaders

Gold Sideways Ahead of FOMC – Bearish Butterfly in Highlights

Posted Wednesday, June 19, 2019 by
Arslan Butt • 1 min read

Fellas, the yellow metal gold is trading sideways as the markets await the conclusion of the Federal Reserve’s two-day meeting. However, the choppy session is helping us secure good and quick trades in gold.

FOMC vs. GOLD

Ahead of Fed’s rate decision, the market is mostly muted, as major investors stay out before the FOMC rate today. Overall, the market does not anticipate any changes to be made to interest rates when the Fed’s decision is announced later today Wednesday. However, the chances are high that the US central bank will open the door for rate cuts later this year.

Gold – Technical Outlook & Bearish Butterfly

On the 4-hour chart, gold has formed a bearish butterfly pattern which is suggesting solid chances of a bearish reversal. Gold has already completed the CD wave around $1,358 and has closed a couple of candles below the same level, which suggests high chances of sell-off.

As you know, the market is all about FOMC today, and it may also help us determine the long term trend in gold. Below $1,358, gold can continue to trade lower until $1,326. While bullish breakout of $1,350 can extend the buying trend until $1,360 and $1,371.

Good luck!

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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.
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AJ HUSSAIN
AJ HUSSAIN
1 year ago

SELL GOLD