Gold Inside Day Follows the Outside Day before FOMC
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Automate trades with Mirror Trader
-Gold opened over 2% higher on Monday but ended the day near the lows. The high occurred during the first hour of Sunday evening trading.
-Sunday’s evening’s rally may compose wave 4 of 3. The implications are for wave 3 to complete at lower levels before a bounce in wave 4 and another leg lower in wave 5.
-Price has retraced half of the rally from the June low. The 8/7 low and 61.8% retracement at 1273-1277 is the next estimated support.
Trading Strategy: Last update was “looking to start short position at 1334.” Monday’s high was 1334.70. Shorts are favored below that level.
LEVELS: 1267 1273 1300 | 1325 1335 1356
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.