XAU/USD LAST SHORT SCALP BEFORE POTENTIAL ROCKET UPWARDS??
As we grow closer to the Fed rate decision this Wednesday, we all as investors and traders are anticipating the movement of markets. From my current research, here's the current plan i have for tomorrow BEFORE the rate decision:
Gold is tracing back to make up some liquidity, we have an easily read reduction in momentum shown by the downtrend resistance line I have drawn as well as a rejection from a previous supply zone. Gold has rejected the "boxed" area more than once already, indicating to me a short position for at least the short term is likely.
If the Fed decides to cut the rate by 50bps, i think we will see an insane surge of gold price the same day, if they go for a 25 bps cut, i still see gold accumulating more gains, just in a slower fashion. In any sense, when the fed cuts rates, it looks really good for gold as it makes the VALUE of the dollar less powerful, thus gold is more easily acquired.
I personally believe we will see gold smash past the 2600 psychological level and onwards. I will be prepared to trade, as of now, im only speculating a potential short scalp for the meantime. I will not be taking any trades on gold until after the release of the economic data.
Gold is tracing back to make up some liquidity, we have an easily read reduction in momentum shown by the downtrend resistance line I have drawn as well as a rejection from a previous supply zone. Gold has rejected the "boxed" area more than once already, indicating to me a short position for at least the short term is likely.
If the Fed decides to cut the rate by 50bps, i think we will see an insane surge of gold price the same day, if they go for a 25 bps cut, i still see gold accumulating more gains, just in a slower fashion. In any sense, when the fed cuts rates, it looks really good for gold as it makes the VALUE of the dollar less powerful, thus gold is more easily acquired.
I personally believe we will see gold smash past the 2600 psychological level and onwards. I will be prepared to trade, as of now, im only speculating a potential short scalp for the meantime. I will not be taking any trades on gold until after the release of the economic data.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.