Gold should continue to ride the Fed-driven roller coaster lower

2 thg 10, 2018

XAUUSD Technical Overview:

Pivot: 1187.55

Key Resistance: 1196.45 - 1198.20 - 1200.0 - 1205.23

Key Support: 1191.73 - 1189.66 - 1185.00 - 1181.53

Technical Indicator:

Moving Average: SMA 200 (1196.20) strong resistance & SMA 55 (1188.26) strong support for Gold today.

RSI: The RSI moving into overbought condition soon, now moving around 68 level in 1H chart.

Technical Trade Idea:

Most Likely Scenario: long positions above 1187.55 with targets at 1197.75 & 1200.00 in extension.

Alternative scenario: below 1187.55 look for further downside with 1184.89 & 1181.53 as targets.

Bullish Scenario
A sustained move over $1193.90 will indicate the presence of buyers. If this generates enough upside momentum then look for a possible surge into $1200.00 to $1205.90. The market could begin to really take-off if buyers can overcome $1205.90 with conviction.

Bearish Scenario
A sustained move under $1193.90 will signal the presence of sellers. If the move is accompanied by strong volume then look for the selling to extend into $1187.50, followed by $1184.30.

US ISM Manufacturing: Slowdown in September - Wells Fargo

Gold should continue to ride the Fed-driven roller coaster lower

"Gold should continue to ride the Fed-driven roller coaster lower, after the FOMC raise," rates as expected at the September meeting and kept the dot plots trajectory largely unaltered. Mr. Powell and friends lifted the long-run dot and went to great lengths to say that dropping any reference to "accommodative" in the communique did not mean that they will be straying from their previously announced plan for no," analysts at TD Securities explained.

Thanks
YoCryptoManic