GOLD
As the central banking meeting in Jackson Hole proceeds, a bearish divergence was spotted within GOLD price trend.
USD/GOLD price diverged against MFI oscillator after GOLD formed a higher high, reaching 1534USD/OZ at a given trend channel. This bearish divergence indicates a slight buyers hesitation after GOLD peaked at five-year-high which was led by FOMC rate decision and then falling back to the 1400 level after the Fed cut rates.
This slight exhaustion among bulls might keep the GOLD price within a range of 1450USD - 1550USD for a couple of coming days, dragging it closer to the lower channel line.
Upcoming Fed Chairman's Jerome Powell’s speech on Friday and his first public remarks since cutting interest rates for the first time in over a decade might become a breaking point which will force GOLD price to break a lower channel line (correlating with 38.2% Fibonacci), or trend higher within the channel.
If we will witness a downwards movement beyond 38.2% Fibonacci retracement and lower channel support, a price should find the nex closest support at 1400USD, or lower (1350USD correlates with Fibonacci 127.2% and 161.8% extensions).