Gold Forecast 18/09: Drops Ahead Of The FOMC (Video)

(MENAFN- Daily Forex)

• Gold has fallen a bit in the early hours on Wednesday, which is not a huge surprise considering all of the gains that we have seen as of late.
• The fact that later in the day we have the FOMC interest rate decision press conference end statement.
• I think at this point in time, it's obvious that gold is a good enough trend, but a little bit of a give back isn't a huge surprise.

We eventually had to anyway. And the interest rate decision and statement, as well as the press conference, is a very good opportunity to see the market pull back. I do think there's value to be found in pullbacks and I don't have any interest in shorting this market. So, I think what you're looking for is some type of drop and then bounce.

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The question, of course is:“Will it all happen in one shot, or will it take a few days?” Quite frankly, I would prefer it to take a few days, but that's not the nature of gold these days. If the Federal Reserve sounds extraordinarily dovish, that could just send the gold market skyrocketing. If they sound hockey sure at least non-committal to at least two more rate cuts after today's rate cut, then that could cause chaos for a few days.

EURUSD Chart by TradingView

Looking at the chart, the ascending triangle that we broke out of, of course, is a bullish sign, and it does have a measured move to the $3,800 level. There's literally nothing on this chart that suggests to me that we can't get to $3,800, so I anticipate that we probably will. The $3,600 level underneath would be significant support right along with the $3,650 level. So, I'm paying attention to those areas to see that if we do fall to region, whether or not we get a balance that I can start to scale back into a long position.

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