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By: Ahura Chalki
Welcoming to FED with the rising the price!
Ahead of FED Interest Rate Decision & Conference Gold price holding above its yesterday’s low at $1483, currently trading above $1488. While after LL of the day before twice could breathe above $1490 and trying for that, now. The FOMC likely to make 25bp insurance cut at Oct 29, 30 FOMC given contraction in ISM and slowing in ISM-NMI and Consumer confidence. Traders pricing much more than before in 25bp rate cut from FED, while if they do not, this would be bearish for gold prices. For today, FED meeting and the US GDP will be in spotlight. We are expecting high volatility in the market for today, so better to be more strike in using the SL and managing the risk.
Technical indicators still remain more bearish movement. In the H4 chart, Candles clearly are under EMA200, 50 & 20. RSI moves under 50 level, while Stochastic still on has the correction signal, after returning of yesterday low. Key resistance levels are at $1494 and $1498, which can open the doors for $1508, $1517 and above, on the other hand, $1473 and $1477 are key support levels. The future direction will directly depend on the FED rate decision.
Pivot point: 1488.26
Resistance levels: 1492.95 / 1498.49
Support levels: 1481.73 / 1477.05
Today the expected trading range is between 1477.05 support and 1498.49 resistance.
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