Major divergence between Gold and DXY ( in orange)
RSI Overbought
Fed Meeting on Wednesday
Technical Analysis Ever since we broke above $1800 there hasn't been any stalling action as the COVID19 contagion continues in the U.S. Last Friday we managed to break the $1900 handle and hold above. Since the Sunday open Gold has continued to strengthen adding an additional $41 to its bullish trend.
We do have some major GBP data this week on the economic forefront that we should monitor as it could add some further upside or potentially be a catalyst depending upon the results. Wednesday we have a major market mover which is the FOMC. Interest rates are expected to remain at 0.25% but the press conference that follows the meeting might stir up existing trends.
Trade Idea I always like remaining on the sidelines as we approach major risk events such as the FED. I will however keep a close eye on XAUUSD as we get closer to the FOMC meeting. For now I'm remaining neutral but will continue to monitor the momentum in the search of a decent short selling opportunity.
Regards, Michael Harding
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