Gold continues to trade sideways at the price of $1,500 and there is potential for breakout very soon. Gold might need fundamental trigger for the next directional movement..
Blue horizontal line – Swing high (Right shoulder)
Red rectangle – Upward target in case of the upward break
Yellow rectangle – Neckline and key support
Blue rectangle – Downward target in case of the down break
My advice from yesterday is still valid and in play. Watch potential breakout of the consolidation zone. The breakout of $1,523 will confirm potential test of the $1.551 (failed head and shoulders). If you see the breakout of the $1,482, there is a chance for test of the $1,452. Be ready for both scenarios. The FOMC meeting minutes yesterday didn't produce any breakout and only thing that we got is test and reject of the key support at $1,483. Watch for potential breakout of symmetrical triangle to confirm next direction.
