Gold Price Analysis: XAU/USD is back in the middle of some key levels ahead of FOMC


  • Gold is trading 0.15% higher ahead of the key FOMC statement later on Wednesday.
  • USD 1720.00 is close to the middle of the key consolidation area the precious metal is currently in. 

XAU/USD 4-hour chart

Gold has been in a firm consolidation mode since 14th April and the zone is between USD 1661.18 and 1765.38 per troy ounce. The market has now stalled at the mean value area of the current consolidation period marked by the red rectangle. This is the area where the price has touched the most times in the period mentioned above. 

There could be some rejection here but the price action will largely be based on fundamental developments later on in the session. If anything, at the moment the price action is slightly bearish as a lower high and lower low pattern has formed. The main support is the black line at the bottom of the consolidation but of the previous wave low at USD 1670.76 per troy ounce gets broken this will also be a bearish signal. 

The price is trading right between the 55 and 200 moving averages and the indicators are showing a mixed picture too. The MACD looks like its turning over as the histogram bars are now getting smaller in size. The Relative Strength Index indicator is above the 50 mid-line but is sloping down. This can change very quickly if the market turns higher. It seems gold needs a catalyst for a decent move and this evenings FOMC rate decision and statement could just be the shakeout we are looking for.

Gold FOMC levels

Additional levels

XAU/USD

Overview
Today last price 1717.66
Today Daily Change 3.08
Today Daily Change % 0.18
Today daily open 1714.58
 
Trends
Daily SMA20 1722.66
Daily SMA50 1700.76
Daily SMA100 1645.35
Daily SMA200 1571.41
 
Levels
Previous Daily High 1720.86
Previous Daily Low 1692.33
Previous Weekly High 1745.12
Previous Weekly Low 1670.76
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1709.96
Daily Fibonacci 61.8% 1703.23
Daily Pivot Point S1 1697.65
Daily Pivot Point S2 1680.73
Daily Pivot Point S3 1669.12
Daily Pivot Point R1 1726.18
Daily Pivot Point R2 1737.79
Daily Pivot Point R3 1754.71

 

 

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