While the gold price is falling further with the pre-Fed concern, interest rates seem stronger. Meanwhile, in the markets, the Fed is expected to make a tapering statement of $15 billion per month. For gold to break through the key hurdle, the dove needs a surprise, according to market analyst Dhwani Mehta.
Important levels to watch for gold price
cryptocoin.com As you can follow in the news, today is a very important Fed day with the strengthening of the US dollar and Treasury rates. Because a $15 billion monthly return on asset purchases is already discounted by the market. Gold traders will look for clues about the timing of the Fed’s rate hike and the inflation outlook to set the new direction for the shiny metal. However, Dhwani Mehta states that ahead of the Fed decision, the US ADP workforce and ISM Services PMI data will provide some trading opportunities for gold traders.
According to the analyst, who uses the Technical Confluences Detector for technical analysis of gold price, it shows that gold is on its way to test the Bollinger Band four-hour lower support at $1,777 as the downward spiral extends. The analyst points to the following technical levels:
The next stop for the golden bears is predicted at $1,775, the one-day pivot point S3. The intersection of last week’s low and Fibonacci 61.8% one-month around $1,772 will be a tough nut to crack for gold sellers. At $1,770 four hours, SMA200 will be the line in the sand for optimists.
On the upside, the analyst states that the immediate resistance around $1,782 will challenge the bulls and this level is the intersection of one-week Fibonacci 23.6%, one-day SMA50 and one-day pivot point S2. He continues his analysis in the following direction:
Gold buyers will then look for new entries above the four-hour SMA100 at $1,785. Moreover, a dense cluster of healthy resistance levels between $1,788-1,790 will test bearish commitments on the way to recovery. This zone is the convergence of the one-day Fibonacci 23.6%, the one-month Fibonacci 38%, and the one-day SMA100. One day SMA200 at $1,793 will offer additional resistance, above which the Fibonacci 23.6% in a month will be seen at $1799.
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