With profits of 200pips from yesterday's short to $1910, we're now long. Prices at around 1910 dollars seem like a great place to end the current correction and begin a new upward move, for the following reasons:
1) The June 2021 broken resistance high should now serve as a strong support level.
2) A 50% Fibonacci retracement of the 15th December rally is represented by 1911 dollars,
3) Levels between 1925 and 1891 represent 50% and 61.80% of the 28th January rally.
With the meeting of the Federal Reserve's Monetary Policy Committee scheduled to end today. Volatility is expected to be higher than usual, and while I expect prices to remain above the 1910 dollar mark, any quick test and a false breakout to 1890 dollars per ounce should be fine and would not change our technical view.
1) The June 2021 broken resistance high should now serve as a strong support level.
2) A 50% Fibonacci retracement of the 15th December rally is represented by 1911 dollars,
3) Levels between 1925 and 1891 represent 50% and 61.80% of the 28th January rally.
With the meeting of the Federal Reserve's Monetary Policy Committee scheduled to end today. Volatility is expected to be higher than usual, and while I expect prices to remain above the 1910 dollar mark, any quick test and a false breakout to 1890 dollars per ounce should be fine and would not change our technical view.
Trade closed: target reached:
Gold bounced off our mentioned support after a false breakout to 1893 as mentioned, and reached our target at 2000 dollars level.