FxWirePro:Gold trades in narrow range , market awaits US Fed meeting for further direction
Potential reversal Zone (PRZ) - $1212 (23.6% retracement of $1263.94 and $1195). The yellow metal is trading in narrow range between $1211.75 and $1197 for the past three trading session on account of US Fed monetary pol…
Potential reversal Zone (PRZ) - $1212 (23.6% retracement of $1263.94 and $1195).
The yellow metal is trading in narrow range between $1211.75 and $1197 for the past three trading session on account of US Fed monetary policy.
US Fed is expected to rise interest rates by 25bpbs and market awaits US Fed chairman press conference for further direction. Any rate hike with Hawkish tone by Fed will have bearish impact on Gold.
Gold upside is capped by 23.6% fibo and any further bullishness only above that level.
US Dollar index has taken support near 101 (55- day EMA) and jumped slightly from that level. Short term trend is still bullish as long as support 100.60 holds.
On the higher side, $1212 (23.6% retracement of $1263.94 and $1195) will be acting as next immediate resistance and any break above will target $1217.35 (55- day EMA)/$1221 (100- day EMA).
The immediate support is around $1193 (50% retracement of $1122 and $1263.95) and any break below targets $1180.
It is good to sell on rallies around $1208-$1209 with SL around $1215 for the TP of $1198/$1193
