Gold traders worry about today's FOMC rate decision [Video]

Jason Sen DayTradeIdeas.co.uk

Gold has traded sideways for a month in a range from the June low of 3943 up to Fibonacci resistance at 4160/4170.

We remain right in the middle of that range in very quiet conditions, with little movement yesterday. We reversed again (which is to be expected in a sideways consolidation of course) to retest Friday's low.

We broke below the 10-day ascending trend line minor support at 4047/4042 to target 4023/4019, reaching 4010.

We are now ranging from here back up to that 4042/4047 (we made a high for the bounce here in the afternoon).

We will probably keep reversing and remain in a sideways trend.

Bear in mind the Fed rate meeting today - a move is not expected but there may be expectations of a September rate hike.

If this is talked about it could push Gold lower. A break below 4008 can target 4005, 3999 & even 3984/3980.

A break above 4050 (above minor resistance at 4042/4047) can target stronger resistance at 4065/4070.

A high for the day is possible but shorts need stops above 4076.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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