Gold Technical Analysis: Calm before the FOMC storm on Wednesday

Gold main bear trend is on hold as it has morphed into a sideways consolidation.
Gold is trading in a tight trading range since early September. Gold is oscillating between 1,190.00 and $1,210.00 a troy ounce while the 50, 100 and 200-period simple moving averages are coiled together.
The FOMC on Wednesday can potentially unlock the status quo with a breakout in either direction. In fact, the market has been ranging for so long that the odds are about 50/50 despite the prior main bear trend.

Flavio Tosti Independent Analyst

Gold 4-hour chart

Spot rate: 1,200.00
Relative change: 0.17%
High: 1,203.50
Low: 1,196.80

Main trend: Bearish
Short-term trend: Neutral

Resistance 1: 1,204.10, August 3 swing low (key level)
Resistance 2: 1,211.17 July 19 low
Resistance 3: 1,214.30 August 28 high
Resistance 4: 1,217.89-1,220.90 zone, August 6 high and July 18 low
Resistance 5: 1,225.90 July 17 low
Resistance 6: 1,237.60 July 3 swing low

Support 1: 1,194.30 March 10, 2017 low
Support 2: 1,189.49 September 4 low
Support 3: 1,172.82 current 2018 low
Support 4: 1,145.20 March, 1 2017 low

Author

Flavio Tosti

Independent Analyst

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