Gold failed to break through $ 1,900 last week and is now trading at $ 1850. Analysts say the main reason is the closing of many long positions, which most traders did ahead of the Fed policy meeting.
The downward movement has left sellers with good levels to open short positions, as well as comfortable places to set up their stop orders.
Considering this, it is best to work for an increase according to the targets shown in the chart below:
Volatility will most likely surge this evening, after the Fed announces its decision on interest rates and after Jerome Powell delivers his speech.
The idea above follows the framework of Price Action and Stop Hunting strategies.
Good luck and have a nice trading day!
