Gold hits 1845 4h support and goes up to 1870 daily resistance and currently trading at around 1865 4h support/resistance.
I see three possible scenarios here:
1) Goes up 1877 and will be rejected to 1845-1850 again, if 1845 breaks goes down to first 1813 then 1798
2) Goes up 1891 and will be rejected to 1845-1850 again, if 1845 breaks goes down to first 1813 then 1798
3) Passes 1891 goes up to 1958-1960
Note that if price pass 1877 it will return to purple ascending channel which I personally believe is a bull trap. If it proves me wrong I also would like to mention of formation of new rising channel possibility showed in green.
CPI comes higher than expected for May, even if that means weaker dolar, early tapering migth be a possibility and this puts some sell pressure on gold. We will know after wednesday. I am gonna close all my positions before FOMC. I think wednesday will be one of the most volite days for gold this year. I am not gonna risk my profits. If there wont be an early tapering, gold will fly up to 1920-1930 area first (lots of important levels are in that area, we might see a slight reversal to 1909) then to 1958-1960.
Disclaimer:
!!! This is not a trading advice, please do your own analysis !!!
I see three possible scenarios here:
1) Goes up 1877 and will be rejected to 1845-1850 again, if 1845 breaks goes down to first 1813 then 1798
2) Goes up 1891 and will be rejected to 1845-1850 again, if 1845 breaks goes down to first 1813 then 1798
3) Passes 1891 goes up to 1958-1960
Note that if price pass 1877 it will return to purple ascending channel which I personally believe is a bull trap. If it proves me wrong I also would like to mention of formation of new rising channel possibility showed in green.
CPI comes higher than expected for May, even if that means weaker dolar, early tapering migth be a possibility and this puts some sell pressure on gold. We will know after wednesday. I am gonna close all my positions before FOMC. I think wednesday will be one of the most volite days for gold this year. I am not gonna risk my profits. If there wont be an early tapering, gold will fly up to 1920-1930 area first (lots of important levels are in that area, we might see a slight reversal to 1909) then to 1958-1960.
Disclaimer:
!!! This is not a trading advice, please do your own analysis !!!