Gold bulls are unable to trade above the resistance at $1.357 and bears reacted. At current market conditions I prefer to be neutral to bearish since the price inside of the downward channels. With FOMC today my advice is to define proper risk control before you make any trade.
Blue lines – Pitchfork downward channel
Orange rectangle - Support
Blue rectangle – Support 2
Black downward sloping line - Resistance
Gold is trading inside of the downward sloping channel, which is sign that bears are in control. Key resistance is set at the price of $1.357 and as long as the Gold is trading below that level, I would watch for selling opportunities. Support levels are seen at the price of $1.333 and $1.328. Only if you see breakout of $1.357, watch for potential long positions.
