GOLD Dives Post FOMC, Eyes More Losses

Vesta trader

Junior member
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The US dollar hammered all major currencies and precious metals yesterday after the FOMC meeting minutes were released. The highlight of the report was the hawkish stance of the Fed members. This change in shift caught the attention of the function of forex exchange market and the US dollar buyers took charge. GOLD was seen trading lower after the release and traded as low as $1272. Let’s see what can be the simple forex strategy in the short term for GOLD.

Technically, there was an important sliding channel on the one hour chart for GOLD pair, which was broken recently. GOLD is now trading below the all-important $1300 support level. Currently, the yellow metal buyers are trying to take the prices higher, which can be seen as a part of the correction. If the prices correct a bit higher from the current levels and trades closer to the broken support area of $1284, then sellers are likely to appear. The 38.2% fib retracement level of the last drop from the $1302 high to $1272 low also sits around the mentioned area. So, the chance of sellers appearing is more in the short term.

GOLD 08.21.2014

On the downside, initial support can be seen around the last low of $1272. A lot would depend on the incoming data in the US whether GOLD can break the recent low or not. A break below the same might take GOLD towards the $1260 level.

This post appeared first on The VestaTrader Blog
 
 
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