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Gold Technical Analysis: metal sees descending broadening wedge breakout ahead of Fed

Gold is looking north ahead of the FOMC rate decision. The US central bank is seen raising rates by 25 basis points tomorrow. More importantly, the markets believe that the Fed will adopt a wait-and-see approach for 2019.

The rate pause, if confirmed, would bolster the already bullish setup, as indicated by the descending broadening wedge breakout, seen in the chart below.

4-hour chart

  • As seen above, the pair bounced off strongly from the ascending (bullish) 100-candle moving average (MA) yesterday and cleared the wedge hurdle earlier today. Moreover, the wedge breakout has revived the rally from the Nov. 28 low of $1,211.
  • So, it seems safe to say that the path of least resistance is to the higher side. The immediate hurdle is located at $1,257 - which is the 200-day MA hurdle.
  • The bullish setup, however, would fail if the Fed sounds less dovish-than-expected, sending the US dollar higher across the board.

Trend: Bullish

XAU/USD

Overview:
    Today Last Price: 1248
    Today Daily change: 1.7e+2 pips
    Today Daily change %: 0.140%
    Today Daily Open: 1246.26
Trends:
    Previous Daily SMA20: 1232.71
    Previous Daily SMA50: 1226.69
    Previous Daily SMA100: 1213.94
    Previous Daily SMA200: 1231.02
Levels:
    Previous Daily High: 1248.18
    Previous Daily Low: 1235.85
    Previous Weekly High: 1250.85
    Previous Weekly Low: 1233
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1243.47
    Previous Daily Fibonacci 61.8%: 1240.56
    Previous Daily Pivot Point S1: 1238.68
    Previous Daily Pivot Point S2: 1231.1
    Previous Daily Pivot Point S3: 1226.35
    Previous Daily Pivot Point R1: 1251.01
    Previous Daily Pivot Point R2: 1255.76
    Previous Daily Pivot Point R3: 1263.34

 

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